Question: Problem 1: (6 marks) Project A and project B both require an initial investment of $100 and have a 5 -year life. Information regarding both

Problem 1: (6 marks) Project A and project B both require

Problem 1: (6 marks) Project A and project B both require an initial investment of $100 and have a 5 -year life. Information regarding both projects is presented in the table below: a) Calculate the Profitability Index (PI) for project A. (2 marks) b) If project A and B are independent, which project/projects would be accepted? Why? (2 marks) c) If project A and B are mutually exclusive, which project/projects would be accepted? Why? (2 marks)

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