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Using the profitability index method, the present value of cash inflows for Project Flower is $87000 and the present value of cash inflows of Project
Using the profitability index method, the present value of cash inflows for Project Flower is $87000 and the present value of cash inflows of Project Plant is $47000. If Project Flower and Project Plant require initial investments of $89000 and $39000, respectively, and have the same useful life, the project that should be accepted is: 1. Project Plant. 2. Neither project should be accepted. 3. Either project may be accepted. 4. Project Flower
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