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The following are the cash flows of two projects: Year Project A Project B 0 $ 350 $ 350 1 180 250 2 180 250
| 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 | ||||||||||
|
| |||||||||||
| 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.) |
| Project | Profitability index |
| A | ? |
| B | ? |
|
| |
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Capital Budgeting
Authors: Pamela P. Peterson
1st Edition
0471218332, 9780471218333
