Given the discount rates and the future cash flows of each project, which projects should they accept
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Given the discount rates and the future cash flows of each project, which projects should they accept using profitabilityindex?
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Cash Flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate Project U Project V Project W Project X -$2,000,000$2,500,000$2,400,000-$1,750,000 $ 500,000 600,000 $1,000,000 300,000 $ 500,000 $600,000 800,000 500,000 $ 500,000 600,000600,000 $ 700,000 $ 500,000 600,000$ 400,000 900,000 $ 500,000 600,000$200,000 $1,100,000 6% 9% 15% 22%
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Find the present value of benefits and divide by the present value of the costs for each project Pro...View the full answer
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