What Would Be the Weighted Average Profitability Index of the Following

question 66

Multiple Choice

What would be the weighted average profitability index of the following two investments, given the firm only has $250 to invest?
Project A: Cost = $120, NPV = 80
Project B: Cost = $100, NPV = 75

• A) .62
• B) .67
• C) .75
• D) .79

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