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QUESTION 25 Jefferson International is trying to choose between the flowing two mutually exclusive design projects: Year 0 -$79,000 18,500 39,600 48,700 -$12,500 5,800 2
QUESTION 25 Jefferson International is trying to choose between the flowing two mutually exclusive design projects: Year 0 -$79,000 18,500 39,600 48,700 -$12,500 5,800 2 3 25,600 The required rate of return is 9 percent. Project A has a profitability index of 1.3 and project B has a profitability index of 1.24. Which project should the firm accept and why? Choose the answer with the "best" reasoning Project A because it has a higher profitability index Project B because it has a higher profitability index Project A because it has a higher NPV Project B because it has a higher NPV Project B because it has a higher profitability index and NPV
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