Profitability Index versus NPV. Consider these two projects:
Project C 0 C 1 C 2 C 3
A -$36 +$20 +$20 +$20
B - 50 + 25 + 25 + 25
A. Which project has the higher NPV if the discount rate is 10 percent?
B. Which has the higher profitability index?
C. 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?
Please help me with answers and WORK to these questions so that I can learn how to perform these problems.