Question: Consider the following projects: Cash Flows ($) Project C 0 C 1 D 10,200 20,400 E 20,200 35,350 Assume that the projects are mutually exclusive

Consider the following projects:

Cash Flows ($)
Project	C₀	C₁
D	10,200	20,400
E	20,200	35,350

Item3

Time Remaining 1 hour 12 minutes 15 seconds

01:12:15

Item3

Time Remaining 1 hour 12 minutes 15 seconds

01:12:15

Consider the following projects:

Cash Flows ($)
Project	C₀	C₁
D	10,200	20,400
E	20,200	35,350

Assume that the projects are mutually exclusive and that the opportunity cost of capital is 12%. a. Calculate the profitability index for each project.(Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Calculate the profitability-index using the incremental cash flows. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c.. Which project should you choose? Project D or Project E

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