Suppose you are given the following two projects A and B with the cash flows...
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Finance
Suppose you are given the following two projects A and B with the cash flows below, if the cost of capital is 10%, what is the Profitability Index (PI) of projects A and B?
Year
Project A
Project B
0
-5000
-6000
1
1500
1500
2
2000
2500
3
3000
4000
4
3500
4000
1.457;1.492
1.457;1.340
1.532;1.528
1.639;1.340
1.622;1.409
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