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A company requlres a 1 2 % return from its Investments, and is considering two alternatlve investment projects. The expected net cash flows from the
A company requlres a return from its Investments, and is considering two alternatlve investment projects. The expected net cash flows from the two projects along with present value factors follow.
Note: Use approprlate factors from the tables provided. PV of $ IV of $ PVA of $ and FVA of $
Calculate the profitability index of each project.
tableProfitability IndexNumerator:,Denominator:,Profitability IndexProfitability indexProject AProject Z
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