Question: The following table shows the timetable for the two projects for projects A and B and the installation of an existing project in Year 0.
The following table shows the timetable for the two projects for projects A and B and the installation of an existing project in Year 0. Answer the following questions: Which of the two projects will you accept, the two projects will be rejected based on the assumption that you want to recover your money within 3 years of the life of the project? Why? (2 tag) B. Calculate the profitability index for the two projects? The two projects are based on the profitability index If the two projects are mutually exclusive, and why? (3 mark

YEAR project A ( Cash flow) -11,000$ 0 project B( Cash flow) -26,000$ 1 4000 2000 2 4000 8000 3 4000 14,000 4 4000 20,000 5 4000 26,000 6 4000 32,000 7 4000 8 26,000 32,000 4000 YEAR project A ( Cash flow) -11,000$ 0 project B( Cash flow) -26,000$ 1 4000 2000 2 4000 8000 3 4000 14,000 4 4000 20,000 5 4000 26,000 6 4000 32,000 7 4000 8 26,000 32,000 4000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
