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Refer to two projects with the following cash flows: Year Project A Project B 0 -$180 -$180 1 80 95 2 80 95 3 80
Refer to two projects with the following cash flows:
Year | Project A | Project B |
0 | -$180 | -$180 |
1 | 80 | 95 |
2 | 80 | 95 |
3 | 80 | 95 |
4 | 80 | |
If the opportunity cost of capital is 13%, what is the profitability index for each project? (Round your answers to 4 decimal places.)
Project A | |
Project B |
Does the profitability index rank the projects A and B correctly?
(Click to select) Yes No |
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