Question: Consider the following two projects: Project Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash

Consider the following two projects:

Project

Year 0

Cash Flow

Year 1

Cash Flow

Year 2

Cash Flow

Year 3

Cash Flow

Year 4

Cash Flow

Discount

Rate

A100405060N/A0.16B73303030300.16

The profitability index for project B is closest to:

A.0.09

B.22.49

C.0.15

D.14.99

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