Question: Consider the following projects: Project D E Cash Flows ($) -11,400 -21,400 C1 22,800 37,450 Assume that the projects are mutually exclusive and that the

Consider the following projects: Project D E Cash Flows ($) -11,400

Consider the following projects: Project D E Cash Flows ($) -11,400 -21,400 C1 22,800 37,450 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 8%. a. Calculate the profitability index for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete and correct. Project Profitability Index 0.85 D E 0.62 b-1. Calculate the profitability-index using the incremental cash flows. (Do not round intermediate calculations. Round your answer to 2 decimal places.) X Answer is not complete. Profitability-index

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