Question: Consider the following two projects: Project Year0CashFlow Year 1CF Year 2CF Year 3CF Year 4CF Discount Rate A -100 40 50 60 N/A 0.14 B

Consider the following two projects:

Project Year0CashFlow Year 1CF Year 2CF Year 3CF Year 4CF Discount Rate

A -100 40 50 60 N/A 0.14

B -73 30 30 30 30 0.14

The profitability index for project A is closest to:

A. 28.12

B. 14.06

C. 0.21

D. .014

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