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Curry Inc. is trying to choose between the following two mutually investment pr...
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Curry Inc. is trying to choose between the following two mutually investment projects:
Year
|
Project A
Cash flows ($)
|
Project B
Cash flows ($)
|
0
|
-220,000
|
-420,000
|
1
|
200,000
|
300,000
|
2
|
200,000
|
300,000
|
3
|
200,000
|
300,000
|
4
|
200,000
|
300,000
|
The required return is 15 percent. The company applies the profitability index decision rule. What is the profitability index for a project with the higher profitability index?
Give the answer rounding to the nearest unit, with no decimal places (e.g., if the answer would be 1.234, give 1; or if the answer would be 1.562, give 2).