Question
You are considering two independent projects both of which have been assigned a discount rate of 9 percent. Based on the profitability index, what is
You are considering two independent projects both of which have been assigned a discount rate of 9 percent. Based on the profitability index, what is your recommendation concerning these projects? Show working (5 marks) Project A Project B
Year Cash flow Year Cash flow
0 -$42,500 0 -$45,000
1 $24,000 1 $15,000
2 $24,000 2 $38,000
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Handbook Of Heavy Tailed Distributions In Finance
Authors: S.T Rachev
1st Edition
0444508961, 9780444508966
