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Suppose you are given the following two projects A and B with the cash flows shown below, if the cost of capital is 12%, what
Suppose you are given the following two projects A and B with the cash flows shown below, if the cost of capital is 12%, what is the Profitability Index (PI) of the best project? 0 2 3 4 A - $12,000.00 $ 2,500.00 $ 3,500.00 $ 7,500.00 $ 8,500.00 O 1.52 O 1.84 2.26 2.38 O 1.08 B - $14,000.00 $ 8,500.00 $ 8,000.00 $ 8,000.00 $ 9,500.00
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