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Rank the following mutually exclusive projects based on profitability index (PI). Cost of capital = 6%. Project Initial Investment Cash flow 1 Cash flow 2
Rank the following mutually exclusive projects based on profitability index (PI). Cost of capital = 6%.
Project | Initial Investment | Cash flow 1 | Cash flow 2 |
A | 500 | 300 | 250 |
B | 600 | 450 | 300 |
C | 450 | 300 | 300 |
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