When choosing between acceptable projects requiring different initial investments, projects with the highest Net income should be chosen as they have more economic value. Net present value should be chosen as they have more economic value Present value of cash flows should be chosen as they have more economic value. Profitability index should be chosen as they have more economic value. Knowledge Check 02 Ashland Corporation is considering four projects. Project 1 requires an initial investment of $518,750 and has a present value of future cash flows of $1,032,750. Project 2 requires an initial investment of $379,500 and has a present value of future cash flows of $622,500. Project 3 requires an initial investment of $936,000 and has a present value of future cash flows of $1,380,000. Project 4 requires an initial investment of $1,228,500 and has a present value of future cash flows of $1,950,000. Which project has the highest profitability index? Project 1 Project 2 Project 3 Project 4