Question: Consider the following projects: Project C 0 C 1 C 2 A $ 2,650 +$ 2,550 +$ 1,750 B 2,650 +1,990 +1,838 Calculate the profitability

Consider the following projects:

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

Calculate the profitability index for A and B assuming a 21% opportunity cost of capital.

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

multiple choice

Project A

Project B Incorrect

Both

Neither

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