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You are financial analyst for the Abacus Company. The director of capital budgeting has asked you to analyse two proposed capital investments Project and project
You are financial analyst for the Abacus Company. The director of capital budgeting has asked you to analyse two proposed capital investments Project and project each project has a cost of $ 15.000 and the cost of capital for each is 12%. The project expected net cash flow are as follows: Expected Net Cash Flows Year Project A 15.000 5.000 Projects 15.000 3.000 It 3.000 3.500 1.500 B 2.000 4.000 4.500 Calculate each project Net Present Value (NPV) and Profitability Index (PI)
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