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Question(s) / Instruction(s):

The management of Eversman Corporation is considering the following three investment projects:

                                            Project U             Project V             Project W

Investment required                ($27,000)             ($44,000)             ($72,000)

Present value of cash inflows     $27,810                 $49,720                 $78,480

Rank the projects according to the profitability index, from most profitable to least profitable.

A.            V, U, W

B.            U, W, V

C.            W, V, U

D.            V, W, U

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