Fundamentals of Corporate Finance (4th Edition) (Berk  DeMarzo & Harford  The Corporate Finance Series)
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Chapter 8, Problem 37P
Summary Introduction

Profitability Index: The Profitability index is a financial method which analyzes the net present value per unit required or consumed. The Profitability index is that method which is required to take decisions of the acceptance or rejection of the project by make comparison of cash flows with the initial investments required.

Net Present Value: Net present value refers the variance between a present value of cash flows and the present value of cash outflows.

To Identify: In which property the Company K should invest.

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