Question: Consider the following projects: Project C 0 C 1 C 2 A - 2 , 1 0 0 2 , 0 0 0 1 ,

Consider the following projects:
Project C0 C1 C2
A -2,1002,0001,200
B -2,1001,4401,728
a. calculate the profitability index for A and B assuming a 22% opportunity cost of capital.
b. use the profitability index rule to determine which project(s) you should accept (i) if you could undertake both and (ii) if you could undertake only one.

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