Prefer using the profitability index approach

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1. Which project will you accept if they are independent and why?

2. Which project will you accept if they are mutually exclusive and why?

3. Which method (payback or NPV) is better at project valuation and why?

Question 2

With a total budget of $500,000 and given the following data, which project or project combination would you prefer using the Profitability Index Approach?

Reference no: EM131108224

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