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Consider the following projects: Project A B co -$2,100 -2,100 Ci +$2,000 +1,440 C2 +$1,200 +1,728 a. Calculate the profitability index for A and B
Consider the following projects: Project A B co -$2,100 -2,100 Ci +$2,000 +1,440 C2 +$1,200 +1,728 a. Calculate the profitability index for A and B assuming a 20% opportunity cost of capital. (Roun Profitability index (A) 0.1905 X Profitability index (B) 0.1429 X b. Use the profitability index rule to determine which project(s) you should accept if you could ur these projects Use the profitability index rule to determine which project(s) you should accept if you could unde Project A
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