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Problem 8 - 2 3 Profitability Index ( LO 3 ) Consider the following projects: a . Calculate the profitability index for A and B
Problem Profitability Index LO
Consider the following projects:
a Calculate the profitability index for A and B assuming a opportunity cost of capital.
Note: Do not round intermediate calculations. Round your answers to decimal places.
b According to the profitability index rule, which projects should you accept?
Project A
Project B
Both
Neither
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