Question: Consider the four capital budgeting projects listed below. Project A Project B Project C Project D Profitability Index 0.47 0.89 1.25 2.32 The appropriate cost

Consider the four capital budgeting projects listed below.

Project A

Project B

Project C

Project D

Profitability Index

0.47

0.89

1.25

2.32

The appropriate cost of capital is 8.5%. If these projects are mutually independent and the company is not practicing capital rationing, which one or ones of these four projects shall be accepted?

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