Question

12. Avago Technologies Ltd has a project with initial investment requiring $-180,000 and the following cash...

12. Avago Technologies Ltd has a project with initial investment requiring $-180,000 and the following cash flows will be generated because of the project: $45,000; $59,000; $46,000; and $60,000 respectively at the end of each year for the next four years. If the required rate of return is 0.08, find the Profitability Index (PI) of the project.

Group of answer choices

1.86 years

none of the answers is correct

0.70 years

1.89 years

0.96 years

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