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The following are the cash flows of two projects: 1 Year Project A Project B 0 -$290 -$290 170 190 2 170 190 3 170
The following are the cash flows of two projects: 1 Year Project A Project B 0 -$290 -$290 170 190 2 170 190 3 170 190 4 170 If the opportunity cost of capital is 11%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.) Project A B Profitability index 1.8187 1.6011 Is the project with the highest profitability index also the one with the highest NPV? Yes No
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