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QUESTION 15 A project has cash flows of -5144,000, 560,800, 562,300 and $75,000 for Years 0 to 3. respectively. The required rate of return is

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QUESTION 15 A project has cash flows of -5144,000, 560,800, 562,300 and $75,000 for Years 0 to 3. respectively. The required rate of return is 13 percent. What is the profitability index? Should you accept or reject the project based on this index value? O A. 1.07; accept B. 0.93; accept OC 1.07; reject OD. 0.93; reject O E. 1.02; accept QUESTION 16 Two mutually exclusive projects have an initial cost of $60,000 each. Project A produces cash inflows of $30,000, 527,000, and $20,000 for Years 1 through 3, respectively, Project produces cash inflows of 580,000 in Year 2 only. The required rate of return is 10 percent for Project A and 11 percent for Project B. Which project(s) should be accepted and why? O A. Project A, because it has the higher required rate of return. OB. Project B, because it has the larger NPV. OC. Project B, because it has the largest cash inflow in Year 2. OD. Project A because it has the larger NPV. OE Project B, because it has the higher required rate of return

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