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A company is considering two projects, Project A and Project B. The following information is available for each project:
Project A Project B
Investment $500,000 $2,000,000
Net present value of cash flows $600,000 $800,000
Calculate the profitability index for each project. Based on the profitability index, which project, if any, should the company pursue and why?
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Trees characterized by broad, flat leaves that are shed annually, contrast to coniferous or needle-leaved trees.
Pollination
The transfer of pollen from the male part of a plant to the female part, enabling fertilization and the production of seeds.
Tropical Rain Forest
A dense, warm, and wet biome located near the equator, known for its immense biodiversity, complex ecosystem, and pivotal role in global climate regulation.
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Regions characterized by high elevation landscapes, distinct climate variation, and unique biodiversity.
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