Question: Evaluate the following projects, using the net present value and profitability index criteria Assume a cost of capital of 8% Initial Cash Outflow Year 1

Evaluate the following projects, using the net present value and profitability index criteria Assume a cost of capital of 8% Initial Cash Outflow Year 1 Cash flow Year 2 Cash flow Year 3 Cash flow Green Project $160,000 69,000 71,000 85,000 Yellow Project $160,000 95,000 80,000 50,000 Required: Which project is acceptable and why

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