The project cash flows and NPVs for Projects A and B are provided in the table below. Which project has a higher profitability index?
Project A Project B
Year 0 -$1,900 -$2,000
Year 1 $2,500 $1,550
Year 2 $1,500 $1,900
NPV $1,408.12 $784.50
A) Project A
B) Project B
C) The two projects have the same Profitability Index
A
You might also like to view...
According to the needs hierarchy theory, success, self-esteem and prestige are examples of ________ needs
A) physiological B) safety C) ego D) self-actualization
The Sherman, Clayton, and Robinson-Patman Acts are all federal laws that were enacted to curb the formation of ________
A) monopolies B) global partnerships C) competitive markets D) internal markets E) intrastate partnerships
The return on assets pricing method
A) has very little appeal and support. B) has a primary objective of earning a minimum rate of return on assets. C) is a crude approach to pricing and should be used as a last resort. D) replaces the desired rate of return used in cost-based pricing methods with a desired profit objective.
Conflict that arises between a subordinate and a supervisor because both have different political views is an example of intrapersonal conflict.
Answer the following statement true (T) or false (F)