Question: Consider the following projects: Project C 0 C 1 C 2 A $ 3,000 + $ 2,900 + $ 2,100 B 3,000 + 2,340 +

Consider the following projects:

Project C0 C1 C2
A $ 3,000 + $ 2,900 + $ 2,100
B 3,000 + 2,340 + 1,908

a. Calculate the profitability index for A and B assuming a 24% opportunity cost of capital. (Do not round intermediate calculations. Round your answers to 4 decimal places.)

ANSWERS I GOT THAT WERE WRONG !!!

PROJECT a: -1.47

PROJECT b: -1.29

&&&

PROJECT a: 1.2348

PROJECT b: 1.1932

Please help...

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!