Question: Consider Project A and Project B mutually exclusive projects. Calculate the Pi for the incremental Project A over B. Using the Pf decision criterion, what
Consider Project A and Project B mutually exclusive projects. Calculate the Pi for the incremental Project A over B. Using the Pf decision criterion, what would you recommend A. Accept Project A aver Project 8 since the Pt of the incremiental project AB is 1.12 which is greater than 1. B. We cannot compute the incremental project since A is an investment project and B is a financed orolect. C. The Pl of Project A is 0.8A and the Pl of Project B is 1.1, so we should pick Project B over Project A. D. The incremental cash flows of the project (A over B ) are $13,800,$1,200,$11,800 and $6,200 for which the Pi is 112 therefore we should aceept both Project A and Project a. E. None of the abowe are true
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