Question: Consider the following two projects: Project A B Year 0 Year 1 Year 2 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow

Consider the following two projects: Project A B Year 0 Year 1

Consider the following two projects: Project A B Year 0 Year 1 Year 2 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow 40 -100 -73 30 50 30 Year 3 Year 4 Discount Rate 60 N/A 0.11 30 30 0.11 The profitability index for project B is closest to: OA. 0.16 B. 0.27 OC. 27.5 OD. 41.25 kyl

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