Question
Consider the following twoprojects: Project Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow
Consider the following twoprojects:
Project
Year 0
Cash Flow
Year 1
Cash Flow
Year 2
Cash Flow
Year 3
Cash Flow
Year 4
Cash Flow
Discount
Rate
A
100
40
50
60
N/A
0.15
B
73
30
30
30
30
0.15
The profitability index for project B is closestto:
A.
0.1
B.
0.17
C.
17.33
D.
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Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay, Robert J. Hughes, Melissa Hart
12th edition
1259720683, 978-1259720680
