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Using the information below, analyst Matt Stevens uses the profitability index to rank the projects from most profitable to least. He determines the correct order

Using the information below, analyst Matt Stevens uses the profitability index to rank the projects from most profitable to least. He determines the correct order is:

A B C
PV of cash flows 16.25 27.10 54.00
Cost 15.00 24.80 50.00
Discount Rate 9.50% 10.15% 8.00%

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