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Austin Company is investigating four different investment opportunities. Informa

ID: 2375817 • Letter: A

Question

Austin Company is investigating four different investment opportunities. Information on the four projects under study is given below:

Project Number

Because the company%u2019s required rate of return is 10%, a 10% discount rate has been used in the present value computations above.

Compute the project profitability index for each investment project. (Round your answers to 3 decimal places.)

Rank the four projects according to preference, in terms of net present value, project profitability index and internal rate of return.

Project Number

Explanation / Answer

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