Question
Consider the following projects: Cash Flows, $Project. C0 C1 D. 11,600 +23,200 E. 21,600 +37,800 Assume that the projects are mutually exclusive and that the
Consider the following projects:
Cash Flows, $Project. C0 C1 D. 11,600 +23,200 E. 21,600 +37,800
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 ?
b-2.Which project should you choose? Project D ? Project E ?
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Mastering Islamic Finance
Authors: Faizal Karbani
1st Edition
1292001445, 978-1292001449
