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Consider the following two projects: Cash flows Project A Project B C 0 $ 300 $ 300 C 1 130 158 C 2 130 158
Consider the following two projects:
| Cash flows | Project A | Project B | ||||
| C0 | $ | 300 | $ | 300 | ||
| C1 | 130 | 158 | ||||
| C2 | 130 | 158 | ||||
| C3 | 130 | 158 | ||||
| C4 | 130 | |||||
If the opportunity cost of capital is 7%, what is the profitability index for each project?
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