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A firm is trying to choose between 3 investments, all have a cost of capital of 10%. Year Project 1 Project 2 Project 3 Initial
A firm is trying to choose between 3 investments, all have a cost of capital of 10%. Year Project 1 Project 2 Project 3 Initial outlay $150,000 120,000 100,000 1 $ 30,000 30,000 50,000 2 65,000 30,000 0 3 30,000 35,000 0 D 4 75,000 35,000 0 5 100,000 35,000 90,000 Calculate the profitability index for Project 2
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