Question: Consider the following projects: Project C 0 C 0 C 1 C 1 C 2 C 2 A $ 2 , 3 0 0 +

Consider the following projects:
Project C0
C
0
C1
C
1
C2
C
2
A $ 2,300+$ 2,200+$ 1,400
B 2,300+1,640+1,768
Calculate the profitability index for A and B assuming a 25% opportunity cost of capital.
Note: Do not round intermediate calculations. Round your answers to 4 decimal places.
According to the profitability index rule, which project(s) should you accept?
multiple choice
Project A
Project B
Both Correct

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