Consider the following projects: со -$2,100 +$ 2,000 -2,100 +1,440 Project A B a. Calculate the profitability index for A and B assuming a 22% opportunity cost of capital. Note: Do not round intermediate calculations. Round your answers to 4 decimal places. C2 +$ 1,200 +1, 728 X Answer is complete but not entirely correct. Profitability Index Project A B 1.1646 X 1.1149
Consider the following projects: со -$ 2,100 +$ 2,000 -2,100 +1,440 Project A B a. Calculate the profitability index for A and B assuming a 22% opportunity cost of capital. Note: Do not round intermediate calculations. Round your answers to 4 decimal places. X Answer is complete but not entirely correct. Profitability Index Project A B C2 +$ 1,200 +1, 728 1.2506 X 1.0726 X b. According to the profitability index rule, which project(s) should you accept? Project A Project B Both Neither
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!