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XYZ firm is considering 5 capital investment proposals for which the total funds available are limited to $7 million. Which projects should be selected under

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XYZ firm is considering 5 capital investment proposals for which the total funds available are limited to $7 million. Which projects should be selected under the capital rationing? Project Cost (S) $4,000,000 $2,000,000 S5,000,000 $1,000,000 $3,000,000 Profitability Index 1.08 1.15 1.2 1.11

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