question archive Question 2) Gold Mining, Inc

Question 2) Gold Mining, Inc

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Question 2) Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost of capital is 11.81 percent. What is the PI of a project if the initial costs are $1,309,370 and the project life is estimated as 5 years? The project will produce the same after-tax cash inflows of $424,100 per year at the end of the year.

Round the answer to two decimal places.

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