Using the information below, analyst Matt Stevens uses the profitability index to rank the projects...

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Finance

Using the information below, analyst Matt Stevens uses the profitability index to rank the projects from most profitable to least. He determines the correct order is:

A B C
PV of cash flows 16.25 27.10 54.00
Cost 15.00 24.80 50.00
Discount Rate 9.50% 10.15% 8.00%

A.

C, B, A

B.

B, A, C

C.

C, A, B

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