Is the project with the highest profitability index also the one with the highest NPV? Year.........................Project A......................Project

Question:

Is the project with the highest profitability index also the one with the highest NPV?

Year.........................Project A......................Project B

0.................................−$200.............................−$200

1.......................................80.................................100

2.......................................80.................................100

3.......................................80.................................100

4.......................................80.......................................

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-1259722615

9th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

Question Posted: