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Consider the following projects: Project C 0 C 1 C 2 A $ 3,000 +$ 2,900 +$ 2,100 B 3,000 +2,340 +1,908 a. Calculate the
Consider the following projects:
Project | C0 | C1 | C2 |
---|---|---|---|
A | $ 3,000 | +$ 2,900 | +$ 2,100 |
B | 3,000 | +2,340 | +1,908 |
a. Calculate the profitability index for A and B assuming a 24% opportunity cost of capital.
Note: Do not round intermediate calculations. Round your answers to 4 decimal places.
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