Question
Consider the following projects: Project Co C A -$ 2,300 +$ 2,200 +$ 1,400 B -2,300 +1,640 +1,768 a. Calculate the profitability index for
Consider the following projects: Project Co C A -$ 2,300 +$ 2,200 +$ 1,400 B -2,300 +1,640 +1,768 a. Calculate the profitability index for A and B assuming a 25% opportunity cost of capital. Note: Do not round intermediate calculations. Round your answers to 4 decimal places. Profitability Project index A B b. According to the profitability index rule, which project(s) should you accept?
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Public Finance
Authors: Harvey Rosen, Ted Gayer
10th edition
9781259716874, 78021685, 1259716872, 978-0078021688
