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Question 4 of 25 5 Points Questions 1 - 6 are all based on the...

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Accounting

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Question 4 of 25 5 Points Questions 1 - 6 are all based on the following information. Regina Redbird, the CEO of New Mexico Numismatic Scanning Corporation, believes that the firm could create additional value by adding philatelic scanning equipment to its product mix. Machinery used in producing the philatelic scanners would cost $4,750,000. According to Ms. Redbird's projections, the subsequent net cash flows the company would generate for the investors if it entered the philatelic scanner business would be $640,000 per year for 18 years. These are the only cash flows expected. The firm's annual weighted average cost of capital for a project of this type is 10.5%. QUESTION: What is the PROFITABILITY INDEX for the philatelic project? O A. 0.4123 B. 1.0705 OC.7.4219 D. 2.4253 E. 0.2547 Reset Selection

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