bility index. Given the discount rate and the future cash flow of each project listed in the following table, E.use the Pl to determine which projects the company should accept.s the Pl of project A?i Data Table(Round to two decimal places.)ct A should be accepted(Select from the drop-down menu.)(Click on the following icon in order to copy its contents into a spreadsheet.)is the PI of project B?Cash FlowProject B– $2,300,000$1,150,000$950,000$750,000$550,000$350.00018%Project A- $1,900,000$150,000$350,000(Round to two decimal places.)Year 0Year 1Year 2Year 3Year 4$550,000$750,000$950,0004%Year 5Discount ratePrintDoneter your answer in the answer box and then click Check Answer. Profitability index. Given the discount rate and the future cash flow of each project listed in the following table,use the Pl to determine which projects the company should accept.What is the PI of project A?1.25 (Round to two decimal places.)Project A should be accepted (Select from the drop-down menu.)What is the PI of project B?(Round to two decimal places.)

Profitability Index (PI) = PW of cash inflows / Initial investment

ility 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. the Pl of project A? Data Table - X Round to two decimal places.) A should be accepted. (Select from the drop-down menu.) (Click on the following icon D in order to copy its contents into a spreadsheet.) s the Pl of project B? Cash Flow Project B Project A -$1,900,000 $150,000 Round to two decimal places.) Year 0 - $2,300,000 $1,150,000 $950,000 Year 1 Year 2 $350,000 Year 3 $550,000 $750,000 $950,000 $750,000 Year 4 $550,000 Year 5 $350,000 Discount rate 4% 18%

ility 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. the Pl of project A? Data Table - X Round to two decimal places.) A should be accepted. (Select from the drop-down menu.) (Click on the following icon D in order to copy its contents into a spreadsheet.) s the Pl of project B? Cash Flow Project B Project A -$1,900,000 $150,000 Round to two decimal places.) Year 0 - $2,300,000 $1,150,000 $950,000 Year 1 Year 2 $350,000 Year 3 $550,000 $750,000 $950,000 $750,000 Year 4 $550,000 Year 5 $350,000 Discount rate 4% 18%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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