Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
Which of these projects ranks first using profitability index?
Which of these projects ranks first using profitability index?
Initial Investment
PV of the cash flows
A
$500,000
$510,000
B
$275,000
$305,000
C
$1,250,000
$1,350,000
D
$1,500,000
$1,450,000
Profitably Index = NPV of the project/Initial Investment NOTE: I have not given you NPV. But you have all you need to calcualte.
Project A
Project B
Project C
Project D
