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Find what is the profitability index for each project

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Reference no: EM132958223

Cori's Sausage Corporation is trying to choose between the following two mutually exclusive design projects:

Year.             Cash Flow (I)            Cash Flow (II)

0                   -$57,000                   -$31,800

1                  26,800                      15,300

2                    26,800                    15,300

3                    26,800                     15,300

Problem 1: If the required return is 12 percent, what is the profitability index for each project?

Reference no: EM132958223

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