Question
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
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.)
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
a.Calculate the NPV for both projects if the discount rate is 11%.(Do not round intermediate calculations. Round your answers to 2 decimal places.)
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