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A company is considering two mutually exclusive projects, the companys required return is 8 percent and they do not have any capital constraints. Based on

A company is considering two mutually exclusive projects, the companys required return is 8 percent and they do not have any capital constraints. Based on the profitability index, what is your recommendation concerning these projects? Project A Project B Year Cash Flow Year Cash Flow 0 -$38,500 0 -$42,000 1 $20,000 1 $10,000 2 $24,000 2 $40,000

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