Multiple Choice
You are considering the following two mutually exclusive projects with the following cash flows. Both projects will be depreciated using straight-line depreciation to a zero book value over the life
Of the project. Neither project has any salvage value. 
You should accept Project ____ because it has the _____ profitability index of the two projects.
A) A; higher
B) A; lower
C) B; higher
D) B; lower
E) The profitability index should not be used to determine which of these projects should be accepted.
Correct Answer:
Verified
Correct Answer:
Verified
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