Findell Corporation Is Considering Two Projects,A and B,and It Has

Multiple Choice

Findell Corporation is considering two projects,A and B,and it has gathered the following estimates for the projects $$\begin{array} { l c c } & \text { Project A } & \text { Project B } \\\text { Useful life } & 5 \text { years } & 5 \text { years } \\\text { Present value of cash inflows } & \$ 84,360 & \$ 55,100 \\\text { Present value of cash outflows } & \$ 77,000 & \$ 49,000\end{array}$$ What is the present value index for Project A?

A) 1.096
B) 1.124
C) 0.889
D) 0.913