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Courtesy Caravan, Inc. may invest in only one of three new projects. Due to other capital constraints, they have decided to base their decision on
Courtesy Caravan, Inc. may invest in only one of three new projects. Due to other capital constraints, they have decided to base their decision on each project's profitability index. The company has a cost of capital of 9.0%. Cash Flows (millions) Year 0 Year 1 Year 2 (380) 150 180 (385) 180 200 (480) 245 265 Year 3 200 Project A Project B Project C Year 4 250 240 360 230 285 a. What is the profitability index for each project? (Round your answers to four decimal places.) | PL Project A Project B Project C
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