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Determine what is the profitability index for each project

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Reference no: EM132538066

The following are the cash flows of two projects:

Year      Project A           Project B

0              $(230)            $(230)

1                 110                 130

2                    110              130

3                   110               130

4                       110

Question 1: If the opportunity cost of capital is 11%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Reference no: EM132538066

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