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Problem 12.35 Profitability Index You are analyzing two proposed capital investments with the following cash flows. The cost of capital for both projects is 10%.

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Problem 12.35 Profitability Index You are analyzing two proposed capital investments with the following cash flows. The cost of capital for both projects is 10%. Calculate the profitability index (PI) for each project. Profitability Index: Which project, or projects, should be accepted if you have unlimited funds to invest? Which project should be accepted if they are mutually exclusive

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