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There are two projects. One has an outflow of cash of $40,000 in years 0 and 1, followed by an inflow of $55,000 in each of the years 2 and 3. The other has a cash outflow of $80,000 in year 0, followed by an inflow of $34,000 in years 1, 2, and 3.
If the profitability index decision rule applies and the required return is 8%, which project should be selected?
If the NPV decision rule applies then which project should be selected?
Please show all your calculations used to derive the answers.
classify the following problems as to whether they are pure-integer mixed-integer zero-one goal or nonlinear
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