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(Ignore income taxes in this problem.) The management of Pattee Corporation is considering three investment projects-M, N, and O. Project M would require an investment of $25,000, Project N of $67,000, and Project O of $70,000. The present value of the cash inflows would be $28,750 for Project M, $73,700 for Project N, and $79,100 for Project O.
The profitability index of investment project N is closest to:
A. 0.10
B. 0.90
C. 0.09
D. 1.10
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(Ignore income taxes in this problem.) The management of Pattee Corporation is considering three inv...
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