how to calculate the profitability index of a project
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Question
Deibel Corporation is considering a project that would require an investment of $71,000. No other cash outflows would be involved. The present value of the cash inflows would be $95,140. The profitability index of the project is closest to: (Ignore income taxes.)
a. 1.34
b. 0.25
c. 0.66
d. 0.34
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