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Suppose the following two independent investment opportunities are available to Fitz, Inc. The appropriate discount rate is 9 percent. Project Project Beta Year Alpha 400

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Suppose the following two independent investment opportunities are available to Fitz, Inc. The appropriate discount rate is 9 percent. Project Project Beta Year Alpha 400 $6,30 2,400 2,300 1,500 1,400 4,700 4,100 2 3 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., 32161.) Profitability Index Project Alpha Project Beta b. Which projects), if either, should the company accept based on the profitability index rule? Neither project Both projects Project Beta OProject Alpha

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