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 50 60 N/A B - 73 30 30 30 40 Discount Rate 0.11 0.11 30 The profitability index for project B is closest to: O A. 0.27 OB. 41.25 OC. 0.16 OD. 27.5
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