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The following are the cash flows of two projects: Year Project A Project B 0 $ (300) $ (300) 1 180 200 2 180 200
The following are the cash flows of two projects:
| Year | Project A | Project B |
|---|---|---|
| 0 | $ (300) | $ (300) |
| 1 | 180 | 200 |
| 2 | 180 | 200 |
| 3 | 180 | 200 |
| 4 | 180 |
If the opportunity cost of capital is 12%, what is the profitability index for each project?
Note: Round your answers to 4 decimal places.
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Shape Up Your Finances The Personal Finances Handbook
Authors: Ian Birt
1st Edition
0734608268, 978-0734608260
