Question: 0 2 4 Melville Distributing Ltd. is considering two different projects. The cost of capital for each will be 14%. The projects are independent. Below

0 2 4 Melville Distributing Ltd. is considering two different projects. The cost of capital for each will be 14%. The projects are independent. Below are the expected after-tax cash flows. Year 1 3 5 Project LCF - 140 30 50 45 30 Project MCF - 190 45 60 75 60 60 Which project, if either, should Snead undertake on the basis of profitabilty index? 40 Project Project M Project Land Project M Neither Project Lnor Project M

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