A firm is considering the following independent projects. Project Investment Present value of future cash flows
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Question:
A firm is considering the following independent projects.
| Project | Investment | Present value of future cash flows | NPV |
| A | $130 | $176 | $46 |
| B | $103 | $115 | $12 |
| C | $183 | $287 | $104 |
| D | $161 | $199 | $38 |
| E | $184 | $273 | $89 |
What is the Profitability Index of Project B?
Expert Answer:
The Profitability Index PI of Project B is 112 This indicates that Project B is exp... View the full answer
Related Book For 
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
Posted Date:
