Question
ExxonMobil is evaluating two projects, I and J, with the following data: Project Initial Investment ($) Present Value of Cash Inflows ($) I $800,000 $960,000
ExxonMobil is evaluating two projects, I and J, with the following data:
Project | Initial Investment ($) | Present Value of Cash Inflows ($) |
I | $800,000 | $960,000 |
J | $1,200,000 | $1,400,000 |
Calculate the profitability index for each project.
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Financial and Managerial Accounting Information for Decisions
Authors: John Wild, Ken Shaw, Barbara Chiappetta
5th edition
978-1259317552, 1259317552, 978-0078025600, 78025605, 978-1259335013, 1259335011, 978-1259347641
