Question
URGENT DUE LESS THAN AN HOUR Consider the following two projects: Project Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year
URGENT DUE LESS THAN AN HOUR
Consider the following two projects:
| Project | Year 0 Cash Flow | Year 1 Cash Flow | Year 2 Cash Flow | Year 3 Cash Flow | Year 4 Cash Flow | Discount Rate |
| A | 100 | 40 | 50 | 60 | N/A | 0.15 |
| B | 73 | 30 | 30 | 30 | 30 | 0.15 |
The profitability index for project A is closest to:
A.0.18
B. 24.08
C.0.12
D. 12.04
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Public Finance
Authors: Charles Francis Bastable
1st Edition
1375520083, 978-1375520089
