Question
Consider the following projects: Cash Flows, $ Project C 0 C 1 D 10,600 +21,200 E 20,600 +36,050 Assume that the projects are mutually exclusive
| Consider the following projects: |
| Cash Flows, $ | ||
| Project | C0 | C1 |
| D | 10,600 | +21,200 |
| E | 20,600 | +36,050 |
| Assume that the projects are mutually exclusive and that the opportunity cost of capital is 11%. |
| a. | Calculate the profitability index for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Project | Profitability Index | |
| D | ||
| E | ||
| b-1. | Calculate the profitability-index using the incremental cash flows? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Profitability-index |
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Finance At 40 Financial Intelligence
Authors: MOIRA O'NEILL Moira O'Neill
1st Edition
1408101114, 978-1408101117
