Question: Amazon is evaluating two projects, M and N, with the following data: Project Initial Investment ($) Present Value of Cash Inflows ($) M $600,000 $720,000

Amazon is evaluating two projects, M and N, with the following data:

Project

Initial Investment ($)

Present Value of Cash Inflows ($)

M

$600,000

$720,000

N

$900,000

$1,050,000

Calculate the profitability index for each project.

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