Question: Consider the following projects: Cash Flows ($) Co Project D E -10,000 -20,000 C 20,000 35,000 Assume that the projects are mutually exclusive and that
Consider the following projects: Cash Flows ($) Co Project D E -10,000 -20,000 C 20,000 35,000 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 10%. a. Calculate the profitability index for each project. b-1. Calculate the profitability-index using the incremental cash flows. b-2. Which project should you choose?
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