Question: Consider the following projects Project C0 C1 C2 A -2,000 + 2,000 +1,200 B -2,100 + 1,440 +1,728 (A) Calculate the profitability index for A

Consider the following projects

Project C0 C1 C2

A -2,000 + 2,000 +1,200

B -2,100 + 1,440 +1,728

(A) Calculate the profitability index for A and B assuming a 22% opportunity cost of capital (Do not round intermediate calculation. Round your answer to 4 decimal places)

(B) According to the profitability index rule, which projects should you accept?

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