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Logan Company is considering two projects, A and B. The following information has been gathered on these projects: Project A Project B Initial investment needed........................................$40,000
Logan Company is considering two projects, A and B. The following information has been gathered on these projects: Project A Project B Initial investment needed........................................$40,000 $60,000 Present value of future cash flows.............................................60,000 85,000 Useful life.................................................4 years 4 years Based on this information, which of the following statements is (are) true? I. Project A has the highest ranking according to the profitability index criterion. II. Project B has the highest ranking according to the net present value criterion. A. Only I B. Only II C. Both I and II D. Neither I and
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