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medium · CFA Level I Corporate Issuers

Meridian Pack is considering a project with an initial outlay of $500,000 and expected cash inflows of 150,000 per year for 5 years.

If the required return is 10%, the Profitability Index (PI) is closest to:

  1. 1.50
  2. 1.14
  3. 0.14

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