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6. You have 2 projects that you are considering Project A has a cost of R10 000, a cashflow into perpetuity R20 000 and a

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6. You have 2 projects that you are considering Project A has a cost of R10 000, a cashflow into perpetuity R20 000 and a discount rate of 10%. Project B has a cost of R20 000, a cashflow into perpetuity R35 000 and a discount rate of 10%. Based on the Profitability Index, which project should you invest in. (10 Marks)

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