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The following are the cash flows of two projects: Year Project A Project B 0 $ 330 $ 330 1 160 230 2 160 230
| The following are the cash flows of two projects: |
| Year | Project A | Project B | |||||||||
| 0 | $ | 330 | $ | 330 | |||||||
| 1 | 160 | 230 | |||||||||
| 2 | 160 | 230 | |||||||||
| 3 | 160 | 230 | |||||||||
| 4 | 160 | ||||||||||
|
| |||||||||||
| If the opportunity cost of capital is 12%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.) |
| Project | Profitability index |
| A | |
| B |
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The New Finance Overreaction Complexity And Their Consequences
Authors: Robert A. Haugen
4th International Edition
0132775875, 9780132775878
