Question: Consider projects A and B with the following cash flows: C 0 C 1 C 2 C 3 A $ 30 + $ 19 +

Consider projects A and B with the following cash flows:

C0 C1 C2

C3

A $ 30 + $ 19 + $ 19 + $ 19
B 55 + 30 + 30 + 30

a-

1-What is the NPV of each project if the discount rate is 14%?

Project A NPV $____

Project B NPV $____

b-1.

What is the profitability index of each project?

Project A profitability index _____

Project B profitability index _______

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