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Consider the following cash flows for projects A and B. Year Project A Project B 0 -$1000 -$1000 1 375 900 2 375 700 3

Consider the following cash flows for projects A and B.

Year Project A Project B

0 -$1000 -$1000

1 375 900

2 375 700

3 375 500

4 375 -200

5 -100 200

The cost of capital for both projects is 10%. What is the profitability index of projects A and B, respectively?

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