Question: Consider the following projects: Project C 0 C 1 C 2 A $ 2 , 6 5 0 + $ 2 , 5 5 0

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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