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

Consider the following two projects: Year 0 Year 1 Year 2

Consider the following two projects: Year 0 Year 1 Year 2 Project Cash Cash Cash | Year 3 Year 4 Flow Flow Flow Cash Flow Cash Flow -100 40 50 60 N/A -73 30 30 30 30 The profitability index for project A is closest to Discount Rate 0.13 0.13 B O 0.16 O 32.28 O 0.24 16.14

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