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Consider the following two projects with cash flows in Discount Rate .15 15 Year 0 Year 1 Year 2 Year 3 Year 4 Project Cash

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Consider the following two projects with cash flows in Discount Rate .15 15 Year 0 Year 1 Year 2 Year 3 Year 4 Project Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow A -100 40 50 60 N/A B -73 30 30 30 30 22) The profitability index for project A is closest to closest to A) 0.12. B) 21.65 C) 0.17 D) 1201 23) The profitability Index for project B is closest to A) 2334 B) 12.64 C) 0.17 D) 0.12 Consider the following two projects with cash flows in Discount Rate .15 15 Year 0 Year 1 Year 2 Year 3 Year 4 Project Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow A -100 40 50 60 N/A B -73 30 30 30 30 22) The profitability index for project A is closest to closest to A) 0.12. B) 21.65 C) 0.17 D) 1201 23) The profitability Index for project B is closest to A) 2334 B) 12.64 C) 0.17 D) 0.12

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