Question: Consider the following projects: Cash Flows ($) Project C0 C1 D 11,500 23,000 E 21,500 37,625 Assume that the projects are mutually exclusive and that

Consider the following projects: Cash Flows ($) Project C0 C1 D 11,500 23,000 E 21,500 37,625 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 10%. a. Calculate the profitability index for each project. Project Profitability Index D E b-1. Calculate the profitability-index using the incremental cash flows. (D Profitability-index b-2. Which project should you choose? Project D Project E

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