Question: Consider the following projects: Cash Flows, $ Project C0 C1 D 11,300 +22,600 E 21,300 +37,275 Assume that the projects are mutually exclusive and that

Consider the following projects: Cash Flows, $ Project C0 C1 D 11,300 +22,600 E 21,300 +37,275 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 9%. 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.)

Profitability-index

b-2.

Which project should you choose?

	Project D
	Project E

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