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Year Project A Project B 0 $ 220 $ 220 1 100 120 2 100 120 3 100 120 4 100 If the opportunity cost
Year | Project A | Project B | |||||||||
0 | $ | 220 | $ | 220 | |||||||
1 | 100 | 120 | |||||||||
2 | 100 | 120 | |||||||||
3 | 100 | 120 | |||||||||
4 | 100 | ||||||||||
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If the opportunity cost of capital is 10%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.) |
Project | Profitability index |
A | |
B | |
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Is the project with the highest profitability index also the one with the highest NPV? | ||||
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