Profitability Index
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I need to compute the profitability Index for both projects.
Also, which project should I accept based on the profitability index rule?
Year Project A Project B
0 -500 -2000
1 300 300
2 700 1800
3 600 1700
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Solution Summary
This solution contains step-by-step calculations to determine which project is most profitable using the profitability index rule.
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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