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Using the profitability index method, the present value of cash inflows for Project Flower is $88000 and the present value of cash inflows of Project
Using the profitability index method, the present value of cash inflows for Project Flower is $88000 and the present value of cash inflows of Project Plant is $49000. If Project Flower and Project Plant require initial investments of $89100 and $39600, respectively, and have the same useful life, the project that should be accepted is O
Neither project should be accepted.
Project Flower.
Either project may be accepted.
Project Plant.
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