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The following are the cash flows of two projects: Year Project A Project B 0 $400 $400 1 230 300 2 230 300 3 230

The following are the cash flows of two projects:

Year Project A Project B

0 $400 $400

1 230 300

2 230 300

3 230 300

4 230 0

If the opportunity cost of capital is 10%, what is the profitability index for each project?(Do not round intermediate calculations. Round your answers to 4 decimal places.)

Project A?

Project B?

  • I for 1.8200 for project A and 1.8651 for Project B , but they are wrong.

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