
a)
To compute: The profitability index for each project.
Introduction:
The profitability index is a payoff ratio to the investment of the planned project. It is utilized for ranking the projects. The
b)
To compute: The NPV for each project.
Introduction:
The profitability index is a payoff ratio to the investment of the planned project. It is utilized for ranking the projects. The net present value is one of the capital budgeting techniques, which is used to identify the profitability in the proposed investment.
c)
To select: Any one project.
Introduction:
The profitability index is a payoff ratio to the investment of the planned project. It is utilized for ranking the projects. The net present value is one of the capital budgeting techniques, which is used to identify the profitability in the proposed investment.

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Chapter 8 Solutions
ESSENTIAL OF CORP FINANCE W/CONNECT
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