How is the profitability index calculated and how can it be, Financial Management

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How is the profitability index calculated and how can it be

1. How is the profitability index calculated and how can it be used to choose between projects when funds are limited?

2. Why might an investor prefer a convertible bond over a regular bond?

3. The IF for the future value of an annuity is 4.5% at 8% for 4 years. If we wish to accumulate $5,000 by the end of 4 years, how much should the annual payments be?

A) 22,500

B) 1,250

C) 1,111

D) 2,250

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Financial Management: How is the profitability index calculated and how can it be

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Financial Management: How is the profitability index calculated and how can it be

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