Question: Consider the following projects: Project C 0 C 1 C 2 A $ 2,650 + $ 2,550 + $ 1,750 B 2,650 + 1,990 +

Consider the following projects:

Project	C₀			C₁			C₂
A		$	2,650	+	$	2,550	+	$	1,750
B			2,650	+		1,990	+		1,838

a. Calculate the profitability index for A and B assuming a 21% opportunity cost of capital. (Do not round intermediate calculations. Round your answers to 4 decimal places.)

b. According to the profitability index rule, which project(s) should you accept?

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