Question: Consider the following two projects: Cash flows Project A Project B C 0 $ 300 $ 300 C 1 130 158 C 2 130 158

Consider the following two projects:

Cash flows Project A Project B
C0 $ 300 $ 300
C1 130 158
C2 130 158
C3 130 158
C4 130

If the opportunity cost of capital is 7%, what is the profitability index for each project?

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