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Mountain Brook Company is considering two investment opportunities whose cash flows are provided below: Mountain Brook Company is considering two investment opportunities whose cash flows

Mountain Brook Company is considering two investment opportunities whose cash flows are provided below:

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Mountain Brook Company is considering two investment opportunities whose cash flows are provided below: Year Investment A (18,750) Investment B (13,500) 0 $ IS 1 2 6,350 6,350 6,350 5,200 6,350 5,200 4,650 2,800 3 4 The company's hurdle rate is 12%. What is the present value index of Investment A? (Do not round your PV factors and intermediate calculations.) Multiple Choice 1.03 1.00 0.99 None of these answers is correct

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