Question
The following are the cash flows of two projects: Year Project A Project B 0 $ -240 $ -240 1 120 140 2 120 140
The following are the cash flows of two projects:
| Year | Project A | Project B | ||||
| 0 | $ | -240 | $ | -240 | ||
| 1 | 120 | 140 | ||||
| 2 | 120 | 140 | ||||
| 3 | 120 | 140 | ||||
| 4 | 120 | |||||
If the opportunity cost of capital is 12%, 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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Contemporary Issues In Development Finance
Authors: Joshua Yindenaba Abor, Robert Lensink, Charles Komla Delali Adjasi
1st Edition
1138324329, 978-1138324329
