Present Value Project Comparison
Project A: present value (PV) of cash inflows is $55,000 and the PV of the cash outflows is $50,000. Project B: PV of cash inflows is $24,000 and the PV outflows is $20,000. All of the following are true except ______.
the net present value of Project A is $5,000, the net present value of Project B is $4,000, the profitability index for Project A is 1.1, or Project A is a better investment than Project B