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The Cori's Sausage Corporation is choosing between the following two projects: Year Cash Flow (project I) Cash Flow (project II) 10 -$35,000 $16,000 19,800 9,400
The Cori's Sausage Corporation is choosing between the following two projects: Year Cash Flow (project I) Cash Flow (project II) 10 -$35,000 $16,000 19,800 9,400 2 19,800 19,400 19,800 9,400 The discount rate applied to both projects is 10%. Cori's manager believes the company has sufficient resources, so that the two projects should not be treated as mutually exclusive. Which project should be taken based on the profitability index? O A. Project I should be rejected and project I should be accepted. O B. None of the projects should be accepted. OC. Project I should be accepted and project I should be rejected. O D. Both projects should be accepted
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