Question: Consider the following projects: Assume that the projects are mutually exclusive and that the opportunity cost of capital is 1 2 % . a .

Consider the following projects:
Assume that the projects are mutually exclusive and that the opportunity cost of capital is 12%.
a. Calculate the profitability index for each project.
b-1. Calculate the profitability-index using the incremental cash flows.
b-2. Which project should you choose?
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Consider the following projects: Assume that the projects are mutually exclusive

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