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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $242,490 $15,061 1 25,800 4,064 2 54,000 8,616 3 53,000
| Consider the following two mutually exclusive projects: |
| Year | Cash Flow (A) | Cash Flow (B) |
| 0 | $242,490 | $15,061 |
| 1 | 25,800 | 4,064 |
| 2 | 54,000 | 8,616 |
| 3 | 53,000 | 13,743 |
| 4 | 391,000 | 8,569 |
| Whichever project you choose, if any, you require a 6 percent return on your investment. |
| (i) | What is the profitability index for Project A? |
| (Click to select)1.6711.8121.8471.7071.759 |
| (j) | What is the profitability index for Project B? |
| (Click to select)1.8811.9212.042.081.981 |
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The People Policies Audit
Authors: Maurice A. Phelps
1st Edition
1907766049, 978-1907766046
