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A business has two alternative investments: - Project A has an PV of $85m and an initial investment of $60m - Project B has an

A business has two alternative investments:

- Project A has an PV of $85m and an initial investment of $60m

- Project B has an PV of $100m and an initial investment of $90m

- Only one project can be undertaken by the business.

- Company borrowed $10m at the interest of 5% Using profitability index evaluation method, which project should be undertaken?

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