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Profitability Index
Millennium Corporation has P12Mln available money for investment. It has already evaluated several project proposals and now considers the following acceptable projects:
Project Cost of Investment PV Cost of Investment Net Present Value
A P5Mln P5.5Mln P500,000
B 6Mln 6.9Mln 900,000
C 4Mln 4.85Mln 850,000
D 3Mln 3.47Mln 470,000
Question 1: Which project should the company invest?
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