What is the profitability index for project

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Spencer and Jones Inc. is presented with the following two mutually exclusive projects. The required return for both projects is 15%.

Year Project M Project N
0 -$150,000 -$372,000
1 68,600 159,300
2 76,800 193,200
3 71,300 154,800
4 40,500 110,400

a) What is the IRR for each project?

b) What is the NPV for each project?

c) What is the profitability index for each project?

d) Which if either of the projects should the company accept?

Reference no: EM132607350

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