¨You plan to buy a machine that will cost $2000 today and

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¨You plan to buy a machine that will cost $2000 today and

 

¨You plan to buy a machine that will cost $2,000 today and produce cash flows of $1,500 in each of the next two years. The salvage value will be zero. The cost of capital is 15 percent. What is its profitability index? Should you buy the machine?

 

 

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¨You plan to buy a machine that will cost $2000 today and

Best ¨You plan to buy a machine that will cost $2000 today and

¨You plan to buy a machine that will cost $2000 today and