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Suppose the following two independent Investment opportunities are available to Fitz, Inc. The appropriate discount rate is 10 percent Year 0 1 Project Alpha -$3.900
Suppose the following two independent Investment opportunities are available to Fitz, Inc. The appropriate discount rate is 10 percent Year 0 1 Project Alpha -$3.900 2.000 1.900 1,300 Project Beta -$5.500 1.200 3.900 3,700 WN a. Compute the profitability Index for each of the two projects. (Do not round Intermediate calculations and round your answers to 3 decimal places. e.g.. 32.161.) Profitability Index Project Alpha Project Beta which projectis). If either, should the company accept based on the profitability Index b. rule? O Project Alpha O Neither project O Project Beta O Both projects
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