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Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, use the Pl to determine which
Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, use the Pl to determine which projects the company should accept. What is the Pl of project A? (Round to two decimal places.) Cash Flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate Project A - $2,000,000 $200,000 $400,000 $600,000 $800,000 $1,000,000 6% Project B - $2,600,000 $1,300,000 $1,100,000 $900,000 $700,000 $500,000 17%
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