Question: Consider the following projects: Project C 0 C 1 C 2 A $ 2,100 +$ 2,000 +$ 1,200 B 2,100 +1,440 +1,728 Calculate the profitability

Consider the following projects:

Project

C0

C1

C2

A$ 2,100+$ 2,000+$ 1,200
B2,100+1,440+1,728

Calculate the profitability index for A and B assuming a 22% 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?

Consider the following projects: Project C 0 C 1 \f

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