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Can you please solve b-1. What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.)?
Can you please solve b-1. What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.)?
My Answer is wrong. Could you please solve this?
Consider projects A and B with the following cash flows: B -$45 - 70 C1 +$31 + 35 C2 +$ 31 + 35 C3 + $ 31 + 35 a-1. What is the NPV of each project if the discount rate is 15%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a-2. Which project has the higher NPV? b-1. What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-2. Which project has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? Project A Project B 25.78$ 9.91 a- NPV of each project if the discount rate is 15% $ a- Which project has the higher NPV? Project A Profitability index of each project $ 1.57 X 1.14 X b- 1. b- 2. Project A c. Which project has the higher profitability index? Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? Which project is most attractive to a firm that is limited in the funds it can raise? Both d. Project AStep by Step Solution
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