Question: Consider the four capital budgeting projects listed below. The appropriate cost of capital is 8.5%. If these projects are mutually independent, and the company is

Consider the four capital budgeting projects listed below. The appropriate cost of capital is 8.5%. If these projects are mutually independent, and the company is not practicing capital rationing, which one or ones of these four projects shall be accepted?

Project A Project B Project C Project D
Profitability Index 0 0.89 1.25 2.32

You can choose more than one answer.

A.

B.

C.

D.

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