Project Duke has a present value of cash flows of $50,000 and an original investment of $35,000. Project Prince has a present value of cash flows of $90,000 and an original investment of $95,000. Both projects have the same useful life. Using the profitability index, which project should be accepted?
A) Project Duke.
B) Project Prince.
C) Both projects should be accepted.
D) Neither project should be accepted.
Correct Answer:
Verified
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