Question: Consider the following cash flows for two mutually exclusive capital investment projects. The required rate of return is 13%. Use this information for the questions.

Consider the following cash flows for two mutually exclusive capital investment

Consider the following cash flows for two mutually exclusive capital investment projects. The required rate of return is 13%. Use this information for the questions. Year Project A Cash Flow -$32,400 9,720 Project B Cash Flow -$14,400 4,320 4,320 3 9,720 9,720 8,748 4,320 8,748 3,888 3,888 3,888 4,374 What is the profitability index of project A? - 1.117 .94 1.128 1.09 1.06

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