Question: Tractor Supply is considering two mutualy exdusive projects, A and B. Project A costs $95,000 and is anpected to generate $65,000 in year one and
Tractor Supply is considering two mutualy exdusive projects, A and B. Project A costs $95,000 and is anpected to generate $65,000 in year one and $75,000 in year two. Project B costs 5120,000 and is expected to gererate 564,000 in year one, $67,000 in year two, 556,000 in year theee, and $45,000 in year four Tractor 54p ply fequired rate of retum for these projects is 10 . . The profitabitity index Tor Project A is A. 1.12. B. 1,24 C. 1.27
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