Question
The following are the cash flows of two projects: Year Project A Project B 0 $(260) $(260) 1 140 160 2 140 160 3 140
The following are the cash flows of two projects:
Year Project A Project B
0 $(260) $(260)
1 140 160
2 140 160
3 140 160
4 140
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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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
