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Consider the following projects: Project C 0 C 1 C 2 A $ 2,850 + $ 2,750 + $ 1,950 B 2,850 + 2,190 +
Consider the following projects:
| Project | C0 | C1 | C2 | |||||||||||
| A | $ | 2,850 | + | $ | 2,750 | + | $ | 1,950 | ||||||
| B | 2,850 | + | 2,190 | + | 1,878 | |||||||||
a. Calculate the profitability index for A and B assuming a 22% opportunity cost of capital.
Project A:
Project B:
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Quantitative Finance: An Object-Oriented Approach In C++
Authors: Erik Schlogl, Dilip B. Madan
1st Edition
1584884797, 978-1584884798
