Q4.24. The prevailing interest rate is 10%. If the following three projects are mutually exclusive, which should you take?

You have already worked out the recommendations of the NPV and the IRR rule. What does the profitability rule recommend?

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YO Y1 Y2 A -$500 +$300 +$300 B -$50 +$30 +$30 C -$50 +$35 +$35