Question: Consider the following projects: Cash Flows ($) Project C 0 C 1 D 10,100 20,200 E 20,100 35,175 Assume that the projects are mutually exclusive

Consider the following projects:

Cash Flows ($)
Project	C₀	C₁
D	10,100	20,200
E	20,100	35,175

Assume that the projects are mutually exclusive and that the opportunity cost of capital is 11%. a. Calculate the profitability index for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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

b-2. Which project should you choose?

Project D
Project E

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