The following are the cash flows of two projects: Year Project A Project B 0 $ 220 $ 220 1 100 120 2 100 120
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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Authors: Stephen L. Nelson
1st Edition
1118920139, 978-1118920138
