clear ; clc; // Example 3.12 printf('Example 3.12\n\n'); printf('Page No. 72\n\n'); // given Cash_inG = 43000;// Present value of cash inflow for project G in Pound Cash_outG = 40000;// Present value of cash outflow for project G in Pound Net_G = Cash_inG - Cash_outG;// Net present value for G in Pound PI_G = (Cash_inG/Cash_outG);// Profitability index for G Cash_inH = 23000;// Present value of cash inflow for project H in Pound Cash_outH = 20000;// Present value of cash outflow for project H in Pound Net_H = Cash_inH - Cash_outH;// Net present value for H in Pound PI_H = (Cash_inH/Cash_outH);// Profitability index for H //The higher the profitability index the more desirable is the project. if (PI_G>PI_H) then disp('Project G is more attractive than Project H') else disp('Project H is more attractive than Project G') end