What is the profitability index for each project

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Reference no: EM131575690

The following are the cash flows of two projects:

Year Project A Project B

0 −$200 −$200

1 80 100

2 80 100

3 80 100

4 80

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.)

Project Profitability index

Is the project with the highest profitability index also the one with the highest NPV?

Reference no: EM131575690

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