Calculating Profitability Index
Womac Corp. is considering three projects. Project A has a present value of $265,000 and an initial investment of $120,000. Project B has a present value of $400,000 and an initial investment of $220,000. Project C has a present value of $115,000 and an initial investment of $30,000. Using the profitability index, determine how Womac should prioritize these projects.
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