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Problem 8-6 Profitability Index (L03) The following are the cash flows of two projects: Year Project A Project B $(220) $(220) 1 100 120 2
Problem 8-6 Profitability Index (L03) The following are the cash flows of two projects: Year Project A Project B $(220) $(220) 1 100 120 2 100 120 3 100 120 4 100 If the opportunity cost of capital is 10%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.) Answer is complete but not entirely correct. Project Profitability Index 1.4408 X B 1.3565 X
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