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Consider the following two projects: Cash flows Project A Project B C00 $ 280 $ 280 C11 120 148 C22 120 148 C33 120 148
Consider the following two projects:
Cash flows | Project A | Project B |
---|---|---|
C00 | $ 280 | $ 280 |
C11 | 120 | 148 |
C22 | 120 | 148 |
C33 | 120 | 148 |
C44 | 120 |
If the opportunity cost of capital is 11%, what is the profitability index for each project?
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