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Roy's Welding Projects Cash Flows of $13,500,$20,400,and $32,900 for Years

Question 4

Multiple Choice

Roy's Welding projects cash flows of $13,500,$20,400,and $32,900 for Years 1 to 3 for a project with an initial cost of $45,000.What is the profitability index given an assigned discount rate of 15 percent?


A) .92
B) .97
C) 1.03
D) 1.08
E) 1.14

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