Question: Consider the following projects: Cash Flows ($) Project C 0 C 1 D 10,000 20,000 E 20,000 35,000 Assume that the projects are mutually exclusive

Consider the following projects:

Cash Flows ($)
Project	C₀	C₁
D	10,000	20,000
E	20,000	35,000

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

a. Calculate the profitability index for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project	Profitability Index
D
E

b-1. Calculate the profitability-index using the incremental cash flows. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Profitability-index

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