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Titan Oil Co. uses the profitability index to evaluate its alternative E&P projects. The company...

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Accounting

Titan Oil Co. uses the profitability index to evaluate its alternative E&P projects. The company computes the profitability index of its Fireland project and Warfield project. It results an index of 2.09 and 1.59, respectively.

A. The company should reject the Fireland project.

B. The company should execute the Warfield project.

C. The company should reject the Warfield project.

D. Both the Fireland and the Warfield projects are acceptable.

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