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The Profitability Index for a Project Costing $40,000 and Returning

Question 22

Multiple Choice

The profitability index for a project costing $40,000 and returning $15,000 annually for 4 years at an opportunity cost of capital of 12% is:

A) 0.139
B) 0.320
C) 0.500
D) 0.861

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