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QUESTION 10 Emusk Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 8%. Calculate the profitability index for
QUESTION 10
Emusk Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 8%. Calculate the profitability index for project B. (Round to 3 decimals)
| Year | Project A | Project B |
| 0 | -7,000,000 | -4,000,000 |
| 1 | 2,000,000 | 1,200,000 |
| 2 | 2,000,000 | 1,200,000 |
| 3 | 2,000,000 | 1,200,000 |
| 4 | 2,000,000 | 1,200,000 |
| 5 | 2,000,000 | 1,200,000 |
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