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What is the profitability index for Project A with a cost of capital of 8%? Year Project A Project B 0 ($42,000.00) ($45,000.00) 1 $14,000.00

What is the profitability index for Project A with a cost of capital of 8%?

Year Project A Project B

0 ($42,000.00) ($45,000.00)

1 $14,000.00 $28,000.00

2 $14,000.00 $12,000.00

3 $14,000.00 $10,000.00

4 $14,000.00 $10,000.00

5 $14,000.00 $10,000.00

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