Question
The following are the cash flows of two projects: Year Project A Project B 0 $ (220 ) $ (220 ) 1 100 120 2
The following are the cash flows of two projects:
Year Project A Project B
0 $ (220 ) $ (220 )
1 100 120
2 100 120
3 100 120
4 100
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.)
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Horngrens Financial & Managerial Accounting
Authors: Tracie Miller Nobles, Brenda Mattison
7th Edition
0136516254, 9780136516255
