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Suppose the following two independent investment opportunities are available to Relax, Inc. The appropriate discount rate is 12 percent. Year Project Alpha Project Beta -$4,300

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Suppose the following two independent investment opportunities are available to Relax, Inc. The appropriate discount rate is 12 percent. Year Project Alpha Project Beta -$4,300 2,200 2,100 1,400 -$5,900 1,300 4,300 3,900 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 b. Which project should the company accept based on the profitability index rule? O Project Beta O Project Alpha

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