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X P9-20 (similar to) Question Help :, use the Pl to determine which projects the company Profitability index. Given the disco

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COON - V W X Y Z AA Year Project Project B 0 $(2,000,000.00) $ (2,400,000.00) 1 $ 200,000.00 $ 1,200,000.00 2 $ 400,000.00 $

CU NOCO OWN V W Year Project A Project B -2000000 |-2400000 1=U2+1 200000 1200000 =U3+1 400000 1000000 =U4+1 600000 800000 =U

PI of Project A = 1.17

PI of Project B = 1.24

Select project B as it has higher Profitability I ndex

Please dont forget to upvote

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