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A project that provides annual cash flows of $12,500 for 8 years costs $65,000 today. At...

A project that provides annual cash flows of $12,500 for 8 years costs $65,000 today. At what discount rate would you be indifferent between accepting the project or rejecting it? If the required rate of return is 9%, what is the profitability index of this project?   

Please show work and calculation don't do it on excel

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Answer #1

Ans 1.064

The profitability index of this project = 1.064

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