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Based upon the following data: calculate the Profitability Index. Cost = $325Present value of future cash flows = $350

Question

Based upon the following data: calculate the Profitability Index. Cost = $325Present value of future cash flows = $350
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Solution 1

The Profitability Index (PI) is calculated by dividing the present value of future cash flows by the initial investment cost.

Here's the step-by-step calculation:

  1. Identify the present value of future cash flows. In this case, it's $350.
  2. Identify the initial investment cost. In this case, it Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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