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Novak Inc. is comparing several alternative capital budgeting projects as shown below: Projects A B C Initial investment $108000 $148000 $188000 Present value of net

Novak Inc. is comparing several alternative capital budgeting projects as shown below: Projects A B C Initial investment $108000 $148000 $188000 Present value of net cash flows 118000 138000 228000 Using the profitability index, the projects rank as

C, A, B.

A, C, B.

C, B, A.

A, B, C.

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