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Name: A project costs $100,000 and generates a cash flow of $75,000 in year
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Description: A project costs $100,000 and generates a cash flow of $75,000 in year 1, $25,000 in year 2, and then 10,000 in years 3 through 10. What is the profitability index if the WACC is 7% ?

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A project costs $100,000 and generates a cash flow of $75,000 in year 1, $25,000 in year 2, and then 10,000 in years 3 through 10. What is the profitability index if the WACC is 7% ?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 1P

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