Consider the following projects:

Assume that the projects are mutually exclusive and that the opportunity cost of capital is $10\%.$

a$.$ Calculate the profitability index for each project.

b$-1.$ Calculate the profitability$-$index using the incremental cash flows.

b$-2.$ Which project should you choose?

Complete this question by entering your answers in the tabs below.

Req A

Calculate the profitability index for each project.

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.Consider the following projects:

Cash Flows $($$$)$

Project C$0$

C$1$

D $10,00020,000$

E $20,00035,000$

Assume that the projects are mutually exclusive and that the opportunity cost of capital is $10\%.$

a$.$ Calculate the profitability index for each project.

b$-1.$ Calculate the profitability$-$index using the incremental cash flows.

b$-2.$ Which project should you choose?