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Consider the following projects: Project C0 C1 C2 A) $ 2,150 + $ 2,050 + $ 1,250 B) 2,150 + 1,490 + 1,738 a. Calculate
Consider the following projects: Project C0 C1 C2
A) $ 2,150 + $ 2,050 + $ 1,250
B) 2,150 + 1,490 + 1,738
a. Calculate the profitability index for A and B assuming a 21% opportunity cost of capital. (Do not round intermediate calculations. Round your answers to 4 decimal places.) b. According to the profitability index rule, which project(s) should you accept?
Project A
Project B
Both
Neither
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