Three Projects Are Considered by the Firm

Essay

Three projects are considered by the firm. Compute the net present value and the profitability index of each of the projects.
$$\begin{array} { | l | l | l | l | } \hline & \text { Project A } & \text { Project B } & \text { Project C } \\\hline \text { Present value of net cash flows } & 5,200,000 & 2,800,000 & 3,000,000 \\\hline \text { Initial cost } & 600,000 & 1,000,000 & 1,100,000 \\\hline\end{array}$$