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Suppose the following two independent investment opportunities are available to Scott, Inc. The appropriate discount rate is 8 percent. Year Project Alpha Project Beta $4,500

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Suppose the following two independent investment opportunities are available to Scott, Inc. The appropriate discount rate is 8 percent. Year Project Alpha Project Beta $4,500 2,300 2,200 1,450 -$6,100 1,350 4,500 4,000 0 2 Compute the profitability index for each of the two projects. (Do not round intermediate calculations Round your answers to 3 decimal places (e.g., 32.161).) Profitability Index Project Alpha Project Beta Which project(s) should the company accept based on the profitability index rule? Project Alpha Project Beta Both projects Neither project

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