The present values of cash flows for projects, each of which has an initial capital outlay of $350,000, are
|
Project A |
$450,000 |
|
Project B |
$400,000 |
|
Project C |
$375,000 |
The cash value added (or profitability index) for each project suggests that the preferred project is
- Project A
- Project B
- Project C
- All projects are the same because the initial capital outlay is the same