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Suppose the following two independent investment opportunities are available to Scott, Inc. The appropriate discount rate is 10 percent Year Project Alpha Project Beta -$5,500
Suppose the following two independent investment opportunities are available to Scott, Inc. The appropriate discount rate is 10 percent Year Project Alpha Project Beta -$5,500 1,200 3,900 3,700 -$3,900 2,000 1,900 1,300 2 Compute the profitability index for each of the two projects. (Do not round intermediate calculations. Round your answers to 3 decimal places (o.g, 32.161).) Profitability Index Project Alpha Project Beta Which project(s) should the company accept based on the profitability index rule? O Project Beta O Neither project Both projects O Project Alpha
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