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The Pootin's project requires initial investments of $15M and its NPV is $1M.The project has all positive cash flows and appropriate discount rate is 15%.

The Pootin's project requires initial investments of $15M and its NPV is $1M.The project has all positive cash flows and appropriate discount rate is 15%.

What is true?

I. The profitability index is less than 1.

II. The IRR is less than 15%.

I only

II only

None of the above

I and II

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