Given the discount rate and the future cash flow of each project
listed in the following table,
use the PI to determine which projects the company should
accept.
What is the PI of project A?
Enter your answer in the answer box and then click Check
Answer.
Cash Flow
Project A
Project B
Year 0
−$2,000,000
−$2,600,000
Year 1
$400,000
$1,300,000
Year 2
$550,000
$1,150,000
Year 3
$700,000
$1,000,000
Year 4
$850,000
$850,000
Year 5
$1,000,000
$700,000
Discount rate...