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Year, Cash flow 1, Cash flow 2 0 , -55,000, -18,900 1 , 25,000, 10,150 2 ,25,000 ,10,150 3, 25,000, 10,150 a-1 if the required
Year, Cash flow 1, Cash flow 2
0 , -55,000, -18,900
1 , 25,000, 10,150
2 ,25,000 ,10,150
3, 25,000, 10,150
a-1 if the required return for both projects is 10% what is the profitability index for both projects
a-2 if the company applies the profitability index decision rule which project should the firm, accept.
b-1 what is the NPV for both
b-2 if the company applies the NPV decision rule which projects should it choose
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