Question: Hi! Can anyone please help me solve this problem? Your help is really appreciated. 3. Gallatin is using net present value to evaluate two investments,
Hi! Can anyone please help me solve this problem? Your help is really appreciated.
3. Gallatin is using net present value to evaluate two investments, but only has the capital to fund one. The net present values of the investments are similar but the initial investments required are different, as shown below. Investment 1 Investment 2 Initial investment $125,000 $80,000 Net present value $ 22,000 $20,000 Compute the profitability index for each investment (2 points)
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