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Exxon Mobil Corporation is evaluating two investment opportunities in oil exploration projects. Project A requires an initial investment of $100 million and is expected to
Exxon Mobil Corporation is evaluating two investment opportunities in oil exploration projects. Project A requires an initial investment of $100 million and is expected to generate annual revenues of $30 million for the next five years. Project B requires an initial investment of $150 million and is expected to generate annual revenues of $40 million for the next seven years. Calculate the profitability index (PI) for both projects and recommend the most financially viable option for Exxon Mobil Corporation
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