Question: ABC Airlines is evaluating two aircraft options for its fleet expansion: Option A costs $150 million and is expected to generate annual revenues of $30

ABC Airlines is evaluating two aircraft options for its fleet expansion: Option A costs $150 million and is expected to generate annual revenues of $30 million, while Option B costs $200 million and is expected to generate annual revenues of $40 million. Calculate the profitability index for each option and advise the company on the most financially viable choice.

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