I VDSL Company has two mutually exclusive projects Below is a table representing the initial investment and cash flows for these projects over four (4) years Project A Project B Year Cash Flow Cash Flow $ $ 0 750,000 750,000 1 250,000 200,000 2 350,000 400,000 3 250,000 100,000 4 200,000 175,000 a If the company's required rate of return is 8 , calculate the Profitability Index of each project and determine which project is the best investment

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Question: I.VDSL Company has two mutually exclusive projects. Below is a table representing the initial investment and cash flows for these projects over four (4) years.

I.VDSL Company has two mutually exclusive projects. Below is a table representing the initial investment and cash flows for these projects over four (4) years.

Project A

Project B

Year

Cash Flow

-750,000

250,000

200,000

350,000

400,000

250,000

100,000

200,000

175,000

a.If the company's required rate of return is 8%, calculate the Profitability Index of each project and determine which project is the best investment

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