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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Cash Flow Year (I) Cash Flow Cash Flow (II) 0
The Sloan Corporation is trying to choose between the following two mutually exclusive design projects:
Cash Flow Year (I) Cash Flow Cash Flow (II) 0 $70,000 -17,400 1 31,500 9400 |
2 31,500 9400 3 31,500 9400 a.If the required return is 11 percent, what is the profitability index for both projects? Project A and B b.What is the NPV for both projects?
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