Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the following are the cash flows of two projects:

The following are the cash flows of two projects: Year Project A Project B 0 -290 -290 1 170 190 2 170 190 3 170 190 4 170 If the opportunity cost of...

60.1K

Verified Solution

Question

Finance

The following are the cash flows of two projects:

YearProject AProject B
0-290-290
1170190
2170190
3170190
4170

If the opportunity cost of capital is 11%, what is theprofitability index for each project? (Do not roundintermediate calculations. Round your answers to 4 decimalplaces.)

ProjectProfitability Index
a
b

Answer & Explanation Solved by verified expert
4.1 Ratings (696 Votes)
Solution Project Profitability Index a 18187 b 16011 Working Notes I II III I x II IV V I x IV Project A Project B Year PVF 11 Cash Flow Present value Cash Flow Present value 0 1 29000 290000 290 29000 1 0900901 17000 153153153 190 171171171 2    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

(i) Due to COVID-19, our company allows our staff to choose between working in the office...

General Management
Q

Discuss the effect of anticoagulant medications on overall blood clotting and any vitamins involved...

Biology
Q

in a An electric current runs counterclockwise rectangular loop around the outside edge of the...

Physics
Q

20 Which of the following statement is correct a Kinetic energy of a system can...

Physics
Q

If f(x) = 6x-9 and g(x)=x+9/6(a) f(g(x)) =(b) g(f(x)) =(c) Thus g(x) is called an_____function...

Basic Math
Q

Fill in the blanks to complete the coordinates for each point indicated in the first...

Basic Math
Q

A tank is being filled with a liquid L t given below is the amount...

Algebra
Q

Question 1 What is the account classification for unemployment taxes that a company...

Accounting
Q

What is fraud in a company or companies? Consider this situation from the accounting managerial...

Accounting
Q

Under the quality control system established by a CPA firm, the rule that requires said...

Accounting
Q

Mike Sweet opens a web consulting business called Sweet Homes and completes the following transactions...

Accounting
Q

give in-depth analysis on Gregg's financial performance and working capital efficiency for the year ended...

Accounting