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You are considering two independent (not mutually exclusive) projects both of which have been assigned a discount rate of 15%. Based on the profitability index, what is your recommendation concerning these projects?

        Project A                                                Project B

Year                Cash Flow                  Year                Cash Flow

0                      - $46,000                     0                      - $50,000

1                      + $32,000                    1                      + $18,000

2                      + $27,000                    2                      + $54,000

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91612428

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