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The following are the cash flows of two projects: Year Project A Project B 0 $ 290 $ 290 1 170 190 2 170 190
The following are the cash flows of two projects: Year Project A Project B 0 $ 290 $ 290 1 170 190 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 Profitability index A .82 B .60 Is the project with the highest profitability index also the one with the highest NPV?
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