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You have 2 projects that you are considering Project M has a cost of R125 000, a cashflow into perpetuity R18 750 and a discount

  1. You have 2 projects that you are considering
  • Project M has a cost of R125 000, a cashflow into perpetuity R18 750 and a discount rate of 13%.
  • Project N has a cost of R220 000, a cashflow into perpetuity R45 750 and a discount rate of 13%.

Based on the Profitability Index, which project should you invest in.

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