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The company is considering another investment which would have an initial cost of $900,000 and an NPV of $50,000. There is a situation of capital

The company is considering another investment which would have an initial cost of $900,000 and an NPV of $50,000. There is a situation of capital rationing, and you have suggested that the firm should use the profitability index to choose which investment to implement. Advise the company.

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