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30 - e Ocoaric Arfines is considering instaling new entertainment consoles into their air liners. Thoir inittal proposal has a cost of $300,000 and will
30 - e
Ocoaric Arfines is considering instaling new entertainment consoles into their air liners. Thoir inittal proposal has a cost of $300,000 and will bring increased operating cash flows of $160,000 for thee years. The company's opportunify cost of capital is 18%. The firm also has a limiled ifvestment budget and is considering an allernative project with a profitability index of $0.13 What is the profitablity index of the inilal proposal and which one should the firm choose? $0.14, choose the initial project 50.14, choose the altemative project 50.12. choose the alernative project 50. 12 , choose the intial prolect 50.16, choose the initial project Step by Step Solution
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