Question
Gardial Fisheries is considering two independent investments. Assume that each project's cost of capital is 10%. The projects' expected net cash flows are as follows:
Gardial Fisheries is considering two independent investments. Assume that each project's cost of capital is 10%. The projects' expected net cash flows are as follows:
Expected Net Cash Flows
Time Project A Project B
0 ($950) ($850)
1 $350 $280
2 $450 $350
3 $200 $500
4 $600 $400
5 $800 $750
Calculate each project's NPV and profitability index (PI)
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
13th Edition
978-0134083308, 013408330X
