Question: Consider the following projects: Project C0 C1 C2 A $ 3,050 + $ 2,950 + $ 2,150 B 3,050 + 2,390 + 1,918 a. Calculate

Consider the following projects:

Project

3,050

2,950

2,150

3,050

2,390

1,918

a. Calculate the profitability index for A and B assuming a 25% 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?

multiple choice

Project A
Project B
Both
Neither

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