Question: Consider the following projects: Project C 0 C 1 C 2 A $ 2 , 1 5 0 + $ 2 , 0 5 0
Consider the following projects:
Project C C C
A $ $ $
B
a Calculate the profitability index for A and B assuming a opportunity cost of capital.
Note: Do not round intermediate calculations. Round your answers to decimal places.
b According to the profitability index rule, which projects should you accept?
multiple choice
o Project A
o Project B
o Both
o Neither
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