4 QS 24-10 Profitability index LO P3 1.66 points Yokam Company is considering two alternative...
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4 QS 24-10 Profitability index LO P3 1.66 points Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $520,000 and has a present value of cash flows of $1,150,000. Project 2 requires an initial investment of $4 million and has a present value of cash flows of $6 million. 1. Compute the profitability index for each project. eBook Profitability Index Choose Denominator: Profitability Index Profitability index Choose Numerator: Hint Project 1 Project 2 Print References 2. Based on the profitability index, which project should the company prefer? Project Project2
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