Profitability index. Given the discount rate and the future cash flow of each project listed in...

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Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, use the PI to determine which projects the company should accept. What is the PI of project A? (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Project A Project B Year 0 - -$2,100,000 -$2,500,000 Year 1 $650,000 $1,250,000 Year 2 $750,000 $1,150,000 Year 3 $850,000 $1,050,000 Year 4 $950,000 $950,000 Year 5 $1,050,000 $850,000 Discount rate 7% 14% Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, use the PI to determine which projects the company should accept. What is the PI of project A? (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Project A Project B Year 0 - -$2,100,000 -$2,500,000 Year 1 $650,000 $1,250,000 Year 2 $750,000 $1,150,000 Year 3 $850,000 $1,050,000 Year 4 $950,000 $950,000 Year 5 $1,050,000 $850,000 Discount rate 7% 14%

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Profitability index Present value of future cash flows initial investment PV factor 11 discount rate... View the full answer