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Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $520,000 and has a present value of cash flows of $1,200,000.

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Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $520,000 and has a present value of cash flows of $1,200,000. Project 2 requires an initial investment of $4 million and has a present value of cash flows of $7 million 1. Compute the profitability index for each project. Profitability Index Choose Denominator: - Choose Numerator: Profitability Index Profitability index Project 11 Project 21 rences Op a "NEW Required information The following information applies to the questions displayed below) Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 9% return from its investments Investment Al $(220,000) Initial investment Expected net cash flows in year: 200.000 112,000 115,500 Compute this investment's net present value. (PV of $1. FV of $1. PVA of S1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Cash Flow Present Value Present Value Year $ 200.000 112,000 of 1 at 9% 0.9174 0.8417 Year 2 !! Next > 9 a pa

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