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What is the PI of project A and B? Profitability index. Given the discount rate and the future cash flow of each project listed in
What is the PI of project A and B?
Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, use the Pl to detemine which projects the company should accept. Project A Cash Flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate Project B -$2,200,000 -$2,500,000 $500,000 $650,000 $800,000 $950,000 $1,100,000 70h $1,250,000 $1,100,000 $950,000 $800,000 $650,000 15% What is the PI of project A? (Round to two decimal places.)Step by Step Solution
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