Solved: You are offered an investment with returns of 2972 in year, Finance Basics

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You are offered an investment with returns of 2972 in year

You are offered an investment with returns of $ 2,972 in year 1, $ 3,379 in year 2, and $ 5,232 in year 3. The investment will cost you $ 7,255 today. If the appropriate Cost of Capital (quoted interest rate) is 12.5 %, what is the Profitability Index of the investment?

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Finance Basics: You are offered an investment with returns of 2972 in year

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