2. Consider the following two projects with rate of 15%: Year 0 1 2 3 Projcet A -1000 400 500 600 N/A Project B -750 300 300 300 300 What is the NPV of both projects? What is the profitability index of project B?
2. Consider the following two projects with rate of 15%: Year 0 1 2 3 Projcet A -1000 400 500 600 N/A Project B -750 300 300 300 300 What is the NPV of both projects? What is the profitability index of project B?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Kk.330.
Transcribed Image Text:2. Consider the following two projects with rate of 15%:
Year
0
1
2
3
-1000 400
500 600 N/A
Projcet A
Project B
-750 300 300 300 300
What is the NPV of both projects? What is the profitability index of project B?
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