Question: Consider the following two projects: Cash flows Project A Project B C 0 $ 200 $ 200 C 1 80 100 C 2 80 100

Consider the following two projects:

Cash flows Project A Project B
C0 $ 200 $ 200
C1 80 100
C2 80 100
C3 80 100
C4 80

Which measure should you use to choose between the projects?

(NPV or Profitability Index)
If capital is rationed
If capital is not rationed

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