What is the profitability index for each project

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Reference no: EM133000674

Question - The following are the cash flows of two projects:

Year

Project A

Project B

0

$(400)

$(400)

1

230

300

2

230

300

3

230

300

4

230

 

If the opportunity cost of capital is 10%, what is the profitability index for each project?

Reference no: EM133000674

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