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Question 219  profitability index

A project has the following cash flows:

Project Cash Flows
Time (yrs) Cash flow ($)
0 -90
1 30
2 105
 

The required return of a project is 10%, given as an effective annual rate. Assume that the cash flows shown in the table are paid all at once at the given point in time.

What is the Profitability Index (PI) of the project?




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