Costcutters Corp. is considering 3 projects, A, B, and C. The cash flows for each project are shown in the table below. If the cost of capital is 16%, these projects are independent of each other but the company has only $40,000 to invest, find project(s) in which  the company should invest in and why? (Hint: use the capital rationing/profitability index criteria)  

Answer rating: 100% (QA)

To determine which projects Costcutters Corp should invest in we can use the profitability index PI ... View the full answer