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
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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 Flow
Project B
– $2,300,000
$1,150,000
$950,000
$750,000
$550,000
$350.000
18%
Project A
- $1,900,000
$150,000
$350,000
(Round to two decimal places.)
Year 0
Year 1
Year 2
Year 3
Year 4
$550,000
$750,000
$950,000
4%
Year 5
Discount rate
Print
Done
ter your answer in the answer box and then click Check Answer.
Transcribed Image Text: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 Flow Project B – $2,300,000 $1,150,000 $950,000 $750,000 $550,000 $350.000 18% Project A - $1,900,000 $150,000 $350,000 (Round to two decimal places.) Year 0 Year 1 Year 2 Year 3 Year 4 $550,000 $750,000 $950,000 4% Year 5 Discount rate Print Done ter 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.)
Transcribed Image Text: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.)
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