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You and a coworker are analyzing two proposed capital investments with the following cash flows: Year Project A Project B 0 -$15,000-$38,000 1 10,000
You and a coworker are analyzing two proposed capital investments with the following cash flows: Year Project A Project B 0 -$15,000-$38,000 1 10,000 9,500 2 4,500 9,500 3 4,500 9,500 4 1,500 26,600 The cost of capital for both projects is 10 percent. Calculate the profitability index (PI) for each project. (Do not round discount factors. Round intermediate calculations to e.g. 15.25 and final answer to 4 decimal places, e.g. 1.2527.) Pl for Proiect A
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