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Business, 07.08.2021 04:30 saucyyyyniahhhhh

Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $490,000 and has a present value of cash flows of $1,500,000.0. Project 2 requires an initial investment of $4,000,000 and has a present value of cash flows of $7,000,000. Project 2 requires an initial investment of $4 million and has a present value of cash flows of $6 million. Required:
Compute the profitability index for each project. Based on the profitability index, which project should the company prefer?

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