Talley Manufacturing has a project that requires an initial investment of $150,000 and has the following expected stream of cash flows: Year Annual cash flow 1 $ 40,000 2 90,000 3 120,000 Assuming the company's cost of capital is 14 percent, what is the profitability index for the project?

A) 0.849
B) 1.320
C) 1.502
D) 1.405


D

Business

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