Project A1Project A2Investment$1,100,000$1,600,000Requiredat n=0$500,000$370,000$300,000$250,000$200,000$140,000$200,000$400,000$320,000$550,000$500,000$240,000123456. (a) Calculate the profitability index for A1 and A2 at an interest rate of 5%. Fill in the table below. (Round to two decimal places.)Project A1Project A2PI()

here we calculate the profitability index for A1 and A2 by calculating the present value so the…

Answered: a) Calculate the profitability index…

a) Calculate the profitability index for A1 and A2 at an interest rate of 5%. Fill in the table below. (Round to two decimal places.) Project A1 Project A2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Project A1
Project A2
Investment
$1,100,000
$1,600,000
Required
at n=0
$500,000
$370,000
$300,000
$250,000
$200,000
$140,000
$200,000
$400,000
$320,000
$550,000
$500,000
$240,000
1
2
3
4
5
6.

(a) Calculate the profitability index for A1 and A2 at an interest rate of 5%. Fill in the table below. (Round to two decimal places.)
Project A1
Project A2
PI()

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