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Using the Profitability Index, Which of the Following Mutually Exclusive

Question 32

Multiple Choice

Using the profitability index, which of the following mutually exclusive projects should be accepted?
Project A: NPV = $6,000;NINV = $50,000
Project B: NPV = $10,000;NINV = $120,000
Project C: NPV = $8,000;NINV = $80,000


A) A
B) B
C) C
D) all projects should be accepted

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