The following are the cash flows of two projects: Year Project A Project B 0 $310 $310
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Question:
The following are the cash flows of two projects:
Year | Project A | Project B |
---|---|---|
0 | $310 | $310 |
1 | $140 | $210 |
2 | $140 | $210 |
3 | $140 | $210 |
4 | $140 | |
If the opportunity cost of capital is 10%, what is the profitability index for each project?
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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