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Suppose you are given the following two projects A and B with the cash flows below, if the cost of capital is 12%, what is
Suppose you are given the following two projects A and B with the cash flows below, if the cost of capital is 12%, what is the Profitability Index (PI) of projects A and B? Year Project A Project B 0 -8000-10000 1 2500 2500 2500 3000 3 3500 2500 4 3500 5000 109 and 0.94 1.14 and 0.98 1.20 and 1.03 1.07 and 0.91 1.12 and 0.96
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