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Calculate the profitability index of the three projects listed below. Assume the riskiness of the three projects are the same and the opportunity cost of
- Calculate the profitability index of the three projects listed below. Assume the riskiness of the three projects are the same and the opportunity cost of capital is 7%.
| Period | 0 | 1 | 2 | 3 | 4 |
| Project A CF | -1000 | 100 | 400 | 600 | 50 |
| Project B CF | -1000 | 700 | 400 | 100 | 100 |
| Project C CF | -1000 | 100 | 100 | 500 | 2000 |
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Financial Informatics An Information Based Approach To Asset Pricing
Authors: Dorje C Brody, Lane Palmer Hughston, Andrea Macrina
1st Edition
9811246483, 978-9811246487
