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Carla Vista Manufacturing is evaluating two capital projects. The company's choice will be based on the profitability index. Project #1 has a present value
Carla Vista Manufacturing is evaluating two capital projects. The company's choice will be based on the profitability index. Project #1 has a present value of cash flows of $236,000 and a net initial investment of $212.400 while Project #2 has a present value of future cash flows of $967,600 and a net initial investment of $944,000. Click here to view the factor table. Using the present value tables, which project will Carla Vista choose? (Round answers to 3 decimal places, e.g. 2.575.) Project #1 Profitability Index Project #2 Carla Vista should choose since its profitability index is than the profitability index of
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