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Refer to two projects with the following cash flows: Year 01234 Project A -$110 45 45 45 45 Project B -$110 55 55 55 If the opportunity cost of capital is 13%, what is the profitability index for each project? (Round your answers to 4 decimal places.) Project A Project B Does the profitability index rank the projects A and B correctly? (Click to select) =

Refer to two projects with the following cash flows: Year 01234 Project A -$110 45 45 45 45 Project B -$110 55 55 55 If the opportunity cost of capital is 13%, what is the profitability index for each project? (Round your answers to 4 decimal places.) Project A Project B Does the profitability index rank the projects A and B correctly? (Click to select) =

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Refer to two projects with the following cash flows: Year 01234 Project A -$110 45 45 45 45 Project B -$110 55 55 55 If the opportunity cost of capital is 13%, what is the profitability index for each project? (Round your answers to 4 decimal places.) Project A Project B Does the profitability index rank the projects A and B correctly? (Click to select) =
Transcribed Image Text:Refer to two projects with the following cash flows: Year 01234 Project A -$110 45 45 45 45 Project B -$110 55 55 55 If the opportunity cost of capital is 13%, what is the profitability index for each project? (Round your answers to 4 decimal places.) Project A Project B Does the profitability index rank the projects A and B correctly? (Click to select) =
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