Question
Amazon is evaluating two projects, M and N, with the following data: Project Initial Investment ($) Present Value of Cash Inflows ($) M $600,000 $720,000
Amazon is evaluating two projects, M and N, with the following data:
Project | Initial Investment ($) | Present Value of Cash Inflows ($) |
M | $600,000 | $720,000 |
N | $900,000 | $1,050,000 |
Calculate the profitability index for each project.
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Financial and Managerial Accounting Information for Decisions
Authors: John Wild, Ken Shaw, Barbara Chiappetta
5th edition
978-1259317552, 1259317552, 978-0078025600, 78025605, 978-1259335013, 1259335011, 978-1259347641
