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Red Space Company wishes to evaluate two investment projects. Cash flows for the project are as follows. The cost of capital of the company is
Red Space Company wishes to evaluate two investment projects. Cash flows for the project are as follows. The cost of capital of the company is %10. Year | Project A31 Project B 0 - 100.000 00.000 1 40.000 50.000 2 40.000 40.000 3 40.000 30.000 4 40.000 20.000 Which are the Profitability Indices for Project A and Project B, respectively? A) 1,27; 1,15 B) 1,05; 1,09 C) 1,95; 1,05 D) 1,15 ;1,27 E) 1,12; 1.15
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