Consider the following projects: Project Co Cr +$ 2,350 B +1,790 -$2,450 -2,450 a. Calculate the...

 

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Consider the following projects: Project Co Cr +$ 2,350 B +1,790 -$2,450 -2,450 a. Calculate the profitability index for A and B assuming a 23% opportunity cost of capital. Note: Do not round intermediate calculations. Round your answers to 4 decimal places. Answer is complete but not entirely correct. Profitability index Project A B C₂ +$ 1,550 +1,798 Both 1.1980 1.0791 b. According to the profitability index rule, which project(s) should you accept? Project AO Project B Neither Consider the following projects: Project Co Cr +$ 2,350 B +1,790 -$2,450 -2,450 a. Calculate the profitability index for A and B assuming a 23% opportunity cost of capital. Note: Do not round intermediate calculations. Round your answers to 4 decimal places. Answer is complete but not entirely correct. Profitability index Project A B C₂ +$ 1,550 +1,798 Both 1.1980 1.0791 b. According to the profitability index rule, which project(s) should you accept? Project AO Project B Neither

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