In: Finance
The following are the cash flows of two projects:
Year | Project A | Project B | ||||
0 | $ | (330) | $ | (330) | ||
1 | 160 | 230 | ||||
2 | 160 | 230 | ||||
3 | 160 | 230 | ||||
4 | 160 | |||||
If the opportunity cost of capital is 12%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
Project Profitability Index:
A
B