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Problem 5-15 Profitability index Consider the following projects: Project D E Cash Flows ($) CO -10,900 -20,900 C1 21,800 36,575 Assume that the projects are
Problem 5-15 Profitability index Consider the following projects: Project D E Cash Flows ($) CO -10,900 -20,900 C1 21,800 36,575 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 8%. a. Calculate the profitability index for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Project Profitability Index 1.85 X 1.62 X D E b-1. Calculate the profitability-index using the incremental cash flows. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Profitability-index 1.37 X
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