Question: Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flow Cash Flow Cash Flow Cash Flow Cash

Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flow Cash Flow Cash Flow Cash

Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow - 100 40 50 60 N/A -73 30 30 30 30 Discount Rate 0.11 0.11 A B The profitability index for project A is closest to: O A. 20.49 B. 0.2 C. 40.98 D. 0.31 Consider the following timeline detailing a stream of cash flows: Date 0 1 2 N 3 4 ? $100 $100 $200 $200 Cash flow If the current market rate of interest is 10%, then the present value (PV) of this stream of cash flows is closest to: A. $460 B. $552 C. $736 D. $230

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