chapter 24 4a, 4b

kam Company is considering two alternative projects. Project 1 requires an initial investment of $530,000 and has resent value of all its cash flows of $2,150,000. Project 2 requires an initial investment of $4 million and has a esent value of all its cash flows of $6 million. Compute the profitability index for each project. Based on the profitability index, which project should the company select? Complete this question by entering your answers in the tabs below. Compute the profitability index for each project. Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $530,000 and has a present value of all its cash flows of $2,150,000. Project 2 requires an initial investment of $4 million and has a present value of all its cash flows of $6 million. (a) Compute the profitability index for each project. (b) Based on the profitability index, which project should the company select? Complete this question by entering your answers in the tabs below. Compute the profitability index for each project