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September 19, 2014

Homework Help: Finance

Posted by Karam on Friday, June 24, 2011 at 9:20am.

Omega Health Foundation is considering buying personal computers to install in each patientís room. The cost of the investment will be $1,400,000. It is expected that the technology will reduce nursing cost by $200,000 per year for the next seven years. If your discount rate is 10 percent, what is the profitability index of the investment?

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