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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 291,000 $ 41,600 1 37,000 20,000 2 55,000 17,600
| Consider the following two mutually exclusive projects: |
| Year | Cash Flow (A) | Cash Flow (B) |
|---|---|---|
| 0 | $ 291,000 | $ 41,600 |
| 1 | 37,000 | 20,000 |
| 2 | 55,000 | 17,600 |
| 3 | 55,000 | 17,200 |
| 4 | 366,000 | 14,000 |
| Whichever project you choose, if any, you require a return of 11 percent on your investment. |
| e-1. | What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) |
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Complacency And Collusion A Critical Introduction To Business And Financial Journalism
Authors: Keith J. Butterick
1st Edition
074533203X,1849648379
