Question: Consider projects A and B with the following cash flows: C 0 C 1 C 2 C 3 A $ 39 + $ 23 +
| Consider projects A and B with the following cash flows: |
| C0 | C1 | C2 | C3 | ||||||||||||||
| A | $ | 39 | + | $ | 23 | + | $ | 23 | + | $ | 23 | ||||||
| B | 64 | + | 33 | + | 33 | + | 33 | ||||||||||
What is the NPV of each project if the discount rate is 15%? A: is 13.51 B: is 11.35
What is the profitability index of each project (Do not round intermediate calculations. Answer needs to be rounded to 2 decimal places
A: ???? (is not 1.34)
B: ???? (is not 1.17)
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