Using the profitability index method, the present value of cash inflows for Project Flower is $88,000 and the present value of cash inflows of Project Plant is $48,000. If Project Flower and Project Plant require initial investments of $90,000 and $40,000, respectively, and have the same useful life, the project that should be accepted is using the profitability index method, the present Project Flower Neither project should be accepted.Project Plan Either project may be accepted.

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We have to calculate the NPV of both the projects NPV ... View the full answer