Question: Consider the following projects: Cash Flows ( $ ) : ( Project D C 0 = 1 0 , 6 0 0 2 1 C

Consider the following projects: Cash Flows ($) : (Project D C0=10,60021 C1=21,200)(Project E C0=20,600 C1=36,050) Assume that the projects are mutually exclusive and that the opportunity cost of capital is 11%. 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?

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