Question: General Motors is evaluating two projects, E and F, with the following data: Project Initial Investment ($) Present Value of Cash Inflows ($) E $700,000

General Motors is evaluating two projects, E and F, with the following data:

Project

Initial Investment ($)

Present Value of Cash Inflows ($)

E

$700,000

$800,000

F

$900,000

$1,000,000

Calculate the profitability index for each project.

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