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What is the profitability index for the cash flows if the relevant discount rate is 24 percent?

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Solution 1

To calculate the profitability index, you need to know the cash flows of the project. The profitability index is calculated as the present value of future cash flows divided by the initial investment.

Here are the steps to calculate the profitability index:

  1. Identify the cash flows: You need to Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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Similar Questions

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

A project has annual depreciation of $24,300, costs of $100,100, and sales of $147,500. The applicable tax rate is 34 percent. What is the operating cash flow?

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