Question
The following are the cash flows of two projects: Year Project A Project B 0 $ (350 ) $ (350 ) 1 180 250 2
The following are the cash flows of two projects:
| Year | Project A | Project B | ||||
| 0 | $ | (350 | ) | $ | (350 | ) |
| 1 |
| 180 |
|
| 250 |
|
| 2 |
| 180 |
|
| 250 |
|
| 3 |
| 180 |
|
| 250 |
|
| 4 |
| 180 |
|
|
|
|
|
| ||||||
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.)
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Mission Ready Finances Proven Principles To Guide Your Story To Financial Freedom
Authors: Marco Parzych
1st Edition
173321531X, 978-1733215312
