Question: 3) Newstar Corp is analyzing two mutually exclusive projects A and B for selection. The details are given below: Year Cash flow A Cash flow

3) Newstar Corp is analyzing two mutually exclusive projects A and B for selection. The details are given below: Year Cash flow A Cash flow B -$51000 -S15000 1 25000 8000 25000 8000 3 25000 8000 0 Based on profitability index which project should the company choose if the appropriate discount rate is 10% 10 Marks

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