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WKW, Inc Is Analyzing a Project That Requires an Initial Investment

Question 72

Multiple Choice

WKW, Inc. is analyzing a project that requires an initial investment of $10,000, followed by cash inflows of $1,000 in Year 1, $4,000 in Year 2, and $15,000 in Year 3. The cost of capital is 10%. What is the profitability index of the project?


A) 1.04
B) 1.55
C) 1.78
D) 1.97

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