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Homework answers / question archive / A project has an initial cost of $100,000 and generates a present value of net cash inflows of $120,000

A project has an initial cost of $100,000 and generates a present value of net cash inflows of $120,000

Finance

A project has an initial cost of $100,000 and generates a present value of net cash inflows of $120,000. What is the project's profitability index?

    1. .20
    2. 1.20
    3. .80
    4. 5.00

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