The cost of capital is 15%. Cash flows associated with projects A,B,C,D,E are:

	CF0	CF1	CF2	CF3
A	-100	30	150	70
B	-66	30	50	60
C	-33	40	20	40
D	-66	60	50	30
E	-50	60	50	20

Rank these projects from the best to the worst according to the profitability index.

Answer rating: 100% (QA)

YEAR 0 1 2 3 Project A 100 30 150 70 Project B 66 30 5... View the full answer