Juan is considering two independent projects Project A costs $74,000 and cash flows of $18,700, $46,300, and $12,200 for Years 1 to 3, respectively Project B costs $70,000 and has cash flows of $10,600, $15,800, and $67,000 for Years 1 to 3, respectively Juan assigns a discount rate of 10 percent to Project A and 12 percent to Project B Which project or projects, if either, should he accept based on the profitability index rule  Answer options:
1. accept both projects
2. accept Project A and reject Project B.
3. accept either A or B, but not both
4. reject both projects
5. accept Project B and reject Project An

Answer rating: 100% (QA)

5 accept Project B and reject Project A Present value of future cash fl... View the full answer