The following are the cash flows of two projects:
Year | Project A | Project B |
0 | -290 | -290 |
1 | 170 | 190 |
2 | 170 | 190 |
3 | 170 | 190 |
4 | 170 | |
If the opportunity cost of capital is 11%, what is theprofitability index for each project? (Do not roundintermediate calculations. Round your answers to 4 decimalplaces.)
Project | Profitability Index |
a | |
b | |