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You are considering two independent (not mutually exclusive) projects both of which have been assigned a discount rate of 15%. Based on the profitability index,
You are considering two independent (not mutually exclusive) projects both of which have been assigned a discount rate of 15%. Based on the profitability index, what is your recommendation concerning these projects?
Project A Project B
Year Cash Flow Year Cash Flow
0 - $46,000 0 - $50,000
1 + $32,000 1 + $18,000
2 + $27,000 2 + $54,000
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