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Firm X has expected cash inflows, starting with year 1, of $1,500, $3,100, $5,000 and finally in year four, $7,900. The profitability index is 1.35 and the discount rate is 10 percent. What is the initial cost of the project?

1. $9,687.41

2. $12,269.46

3. $14,385.80

4. $17,655.30

5. $20,154.53

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Cash Flow
Firm X has expected cash inflows, starting with year 1, of $1,500, $3,100, $5,000 and finally in year four, $7,900. The profitability index is 1.35 and the ...

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