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Projects A and B are Mutually Exclusive. The required return is 10% Year Cash Flow (A) Cash FLow (B) 0 -20,000 -175,000 1 10,000 80,000
Projects A and B are Mutually Exclusive. The required return is 10%
Year | Cash Flow (A) | Cash FLow (B) |
0 | -20,000 | -175,000 |
1 | 10,000 | 80,000 |
2 | 11,000 | 35,000 |
3 | 11,000 | 125,000 |
Calculate PI for Project B
a) 1.12
b) -.088
c) -0.76
d) 0.76
e) 1.24
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