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

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

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