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You are analyzing two proposed capital investments with the following cash flows: Year 0 1 Project X - $20,000 11,830 5,460 5,460 1,820 Project Y
You are analyzing two proposed capital investments with the following cash flows: Year 0 1 Project X - $20,000 11,830 5,460 5,460 1,820 Project Y - $20,000 6,370 6,370 6,370 6,370 2 3 4 The cost of capital for both projects is 10 percent. Calculate the profitability index (Pl) for each project. (Do not round discount factors. Round intermediate calculations to 2 decimal places, eg. 15.25 and final answer to 4 decimal places, eg. 1.2527.) The Pl for project X is and the PI for project is Which project, or projects, should be accepted if you have unlimited funds to invest? If you have unlimited funds you should invest in neither project Which project should be accepted if they are mutually exclusive? If they are mutually exclusive you should invest in neither project
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