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Use the table for the next two (2) question(s) below. Consider the following two projects with cash flows in $: Year 0 Year 1 Year
Use the table for the next two (2) question(s) below. Consider the following two projects with cash flows in $: Year 0 Year 1 Year 2 Year 3 Year 4 Project Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow A -100 40 50 60 N/A B -73 30 30 30 30 Discount Rate .15 .15 o 22) The profitability index for project A is closest to: A) 0.12. B) 21.65. C) 0.17. D) 12.04. 23) The profitability index for project B is closest to: A) 23.34. B) 12.64. C) 0.17. D) 0.12
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