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Given the discount rates and the future cash flows of each project, which projects should the company accept using profitability index? Cash Flow Year 0

Given the discount rates and the future cash flows of each project, which projects should the company accept using profitability index?

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Cash Flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate Project V Project W Project X Project U $2,000,000-$2,500,000-$2,400,000 $1,750,000 $ 500,000 $600,000 $1,000,000 $ 300,000 $ 500,000$ 600,000$ 800,000 $ 500,000$ 600,000 $600,000$700,000 $ 500,000$ 600,000 400,000 $ 500,000 $ 600,000$ 200,000 $1,100,000 $ 500,000 $900,000 6% 9% 15% 22%

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