DGO Corporation has to decide whether to undertake project 1 or project 2. The projects have...

DGO Corporation has to decide whether to undertake project 1 or project 2. The projects have the following initial investments and future net revenues:

.	Project 1	Project 2
Initial investment	$34,000	$40,000
Net revenue in 2021	$25,000	$35,000
Net revenue in 2022	$30,000	$45,000

Using IP method and a discount rate of 12%, which project would you recommend? Why or why not. This in reference to Profitability Index

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jeff jeffy answered 1 year ago

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