ujeci isteu in ne following table, . use the Pl to determine which projects the company should What is the PI of project A? I (Round to two decimal places.) Data Table - X (Click on the following icon D in order to copy its contents into a spreadsheet) Cash Flow Projoct A $1,900,000 $150,000 $350,000 $550,000 $750,000 $950,000 Projoct B -$2,300,000 $1,150,000 $950,000 $750,000 $550,000 $350,000 18% Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate 4%
ujeci isteu in ne following table, . use the Pl to determine which projects the company should What is the PI of project A? I (Round to two decimal places.) Data Table - X (Click on the following icon D in order to copy its contents into a spreadsheet) Cash Flow Projoct A $1,900,000 $150,000 $350,000 $550,000 $750,000 $950,000 Projoct B -$2,300,000 $1,150,000 $950,000 $750,000 $550,000 $350,000 18% Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate 4%
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
Problem 1PS
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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 Pl of project A?
(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 Pl of project A?
i Data Table
(Round to two decimal places.)
(Click on the following icon o in order to copy its contents into a spreadsheet.)
Cash Flow
Project A
-%241,900,000
$150,000
$350,000
Project B
Year 0
$2,300,000
$1,150,000
$950 000
$750,000
$550,000
Year 1
Year 2
Year 3
$550,000
Year 4
$750,000
$950,000
4%
Year 5
$350.000
Discount rate
18%
Print
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