Question
Consider the following projects: Cash Flows ($) Project C00 C11 D 11,700 23,400 E 21,700 37,975 Assume that the projects are mutually exclusive and that
Consider the following projects:
| Cash Flows ($) | ||
|---|---|---|
| Project | C00 | C11 |
| D | 11,700 | 23,400 |
| E | 21,700 | 37,975 |
Assume that the projects are mutually exclusive and that the opportunity cost of capital is 12%.
a. Calculate the profitability index for each project.
b-1. Calculate the profitability-index using the incremental cash flows.
b-2. Which project should you choose?
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An Introduction To Wavelet Theory In Finance
Authors: Francis In, Sangbae Kim
1st Edition
9814397830, 978-9814397834
