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Problem 5-14 Investment criteria Consider the following two projects: Cash flows Project A Project B C 0 $ 180 $ 180 C 1 70 88

Problem 5-14 Investment criteria

Consider the following two projects:

Cash flows	Project A		Project B
C₀	$	180	$	180
C₁		70		88
C₂		70		88
C₃		70		88
C₄		70

f. What are the internal rates of return on the two projects?
h-1. If the opportunity cost of capital is 10%, what is the profitability index for each project?

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