Given the discount rate and the future cash flow of each project listed below, use the PI

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Given the discount rate and the future cash flow of each project listed below, use the PI to determine which projects the company should accept.

Cash Flow for Project A Project B

Year 0 -2,000,000 -2,700,000

Year 1 200,000 1,350,000

Year 2 400,000 1,150,000

Year 3 600,000 950,000

Year 4 800,000 750,000

Year 5 1,000,000 550,000

Discount rate 4% 15%

What is the PI of project A?

Related Book For answer-question

Calculus For Scientists And Engineers Early Transcendentals

ISBN: 9780321849212

1st Edition

Authors: William L Briggs, Bernard Gillett, Bill L Briggs, Lyle Cochran

See More Books

Posted Date: Nov 02, 2023 01:59 AM

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Given the discount rate and the future cash flow of each project listed below, use the PI

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The Profitability Index PI is calculated as the present value of future cash flows divided by the i... View the full answer

Calculus For Scientists And Engineers Early Transcendentals

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