In: Finance
Calculate the (a) net present value (NPV), (b) profitability index (PI), and (c) internal rate of return (IRR) for Projects 1 and 2 (cash flows shown below), assuming a required return of 14 %. Year 0 project 1 -440 project 2 -420 Year 1 P1 190 P2 150 Year 2 P1 120 P2 150 Year 3 P1 140 P2 190 Year 4 P1 320 P2 330