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View Full Version : Accounting: Profitability Index vs. NPV


a1henson
Mar 9, 2009, 05:26 PM
Project C0 C1 C2 C3
A –$36 +$20 +$20 +$20
B – 50 + 25 + 25 + 25


Which project has the higher NPV if the discount rate is 10 percent?
Which has the higher profitability index?
Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? Which project is most attractive to a firm that is limited in the funds it can raise?

codyman144
Mar 10, 2009, 05:42 AM
At least try to answer the question yourself first. Me giving you the answer won't help you learn.