Data for two projects having the same useful life

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Data for two projects, having the same useful life follows.Project Flower: initial investment, $90,000; present value of net cash flows, $140,000. Project Plant: initial investment, $88,000; present value of net cash flows, $148,000.

Using the profitability index method, which of the two projects should be accepted?
Neither project should be accepted.

  • Either project may be accepted.
  • Project Plant
  • Project Flower

Reference no: EM13586062

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