Unformatted text preview: Based on: Year Cash Inflow X PV Factor = Present Value Present value of cash inflows Present value of cash outflows Net present value Initial Investment Year Cash Inflow Project B $ 157,960 X PV Factor - Present Value Present value of cash inflows Present value of cash outflows Net present value Required A Required B For each alternative project compute the profitability index. If the company can only sele choose? = = Profitability Index Profitability index Profitability Index Choose Numerator: 7 Choose Denominator: Annual pre-tax income 1 Accounts receivable Project A Project B If the company can only select one project, which should it choose? 0...
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- Spring '17