Question: 2. Newman Ltd is analyzing two mutually exclusive projects A and B for selection. The details are given below: Year 0 1 2 3 Cash

2. Newman Ltd is analyzing two mutually exclusive

2. Newman Ltd is analyzing two mutually exclusive projects A and B for selection. The details are given below: Year 0 1 2 3 Cash flow A -$50000 30000 30000 30000 Cash flow B -$25000 10000 10000 10000 Based on profitability index which project should the company choose if the appropriate discount rate is 10% 5 Marks

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