Question: Profitability Analysis: PT ABC is considering 2 projects (Red and White). Here is the information about the project. Project Red: investment required: IDR 10.000 and

  1. Profitability Analysis: PT ABC is considering 2 projects (Red and White). Here is the information about the project. Project Red: investment required: IDR 10.000 and Present Value of cash Inflow IDR 11.000 Project White: : investment required: IDR 5.000 and Present Value of cash Inflow IDR 6.000 Required:

    1. Calculate Project Profitability Index!

    2. Which project do you choose, and why?

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