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 C
C
C
C
C
C
A $ $ $
B
Calculate the profitability index for A and B assuming a opportunity cost of capital.
Note: Do not round intermediate calculations. Round your answers to decimal places.
According to the profitability index rule, which projects should you accept?
multiple choice
Project A
Project B
Both Correct
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