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A company requires an initial investment of $2,500 and it is expected to generate a net...

A company requires an initial investment of $2,500 and it is expected to generate a net cash flow of $1,000 each year for 5 years. Given such information and 15 percent cost of capital, answer the following questions

: a) Calculate the Profitability index for the project. Show your work

b) Compute the Net Present Value. Show your work.

c) Write a report as a financial advisor on your answers in (a) and (b), show if the project is to be accepted under each technique.

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