QS 24-10 Profitability index LO P3
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Yokam
Company is considering two alternative projects. Project 1 requires an
initial investment of $400,000 and has a present value of cash flows of
$1,100,000. Project 2 requires an initial investment of $4 million and
has a present value of cash flows of $6 million.
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| 1. | Compute the profitability index for each project. |
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