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Jefferson International is trying to choose between the following two mutually exclusive design projects Year Cashflow (A) Cashflow (B) $57,000 $61,000 0 1 $9,000 $16,500

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Jefferson International is trying to choose between the following two mutually exclusive design projects Year Cashflow (A) Cashflow (B) $57,000 $61,000 0 1 $9,000 $16,500 $26,300 2 $14,800 4 $18,900 $15,600 $19,600 $4,900 The required return is 12 percent. *If the company applies the profitability index (PI) decision rule, which project should the firm accept? * if the company applies the NPV decision rule, which project should it take? *Given your first two answers, which project should the firm actually accept? Select one: a. Project B; Project B; Project B Ob. Project B: Project A: Project B O c. Project B; Project A: Project A O d. Project A: Project B: Project A Oe. Project A; Project B; Project B

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