Question
We have two projects, A and B, and their cash flows are indicated in the table below. Note: that a negative number is cash outflow,
We have two projects, A and B, and their cash flows are indicated in the table below. Note: that a negative number is cash outflow, and a positive number is cash inflow.
| Project | Time | |
|
| 0 | 1 |
| A | -30.00 | 90.00 |
| B | -20.00 | 80.00 |
Suppose that the cost of capital is 20%. What are the profitability indexes (PIs) for projects A and B?
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Financial Performance
Authors: Marc Bertoneche, Rory Knight
1st Edition
0750640111, 978-0750640114
