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Which project will cullumber choose

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Reference no: EM133160061

Question - Cullumber Manufacturing is evaluating two capital projects. The company's choice will be based on the profitability index. Project #1 has a present value of cash flows of $168,000 and a net initial investment of $147,600 while Project #2 has a present value of future cash flows of $688,800 and a net initial investment of $640,000. Using the present value tables, which project will Cullumber choose?

Reference no: EM133160061

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