Question: Using the information below, analyst Matt Stevens uses the profitability index to rank the projects from most profitable to least. He determines the correct order

Using the information below, analyst Matt Stevens uses the profitability index to rank the projects from most profitable to least. He determines the correct order is:

	A	B	C
PV of cash flows	16.25	27.10	54.00
Cost	15.00	24.80	50.00
Discount Rate	9.50%	10.15%	8.00%

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