Evaluate the following projects, using the profitability index. Assume a cost of capital of 13%. of Year Cash Flow Year O Cash Flow Year 1 Cash Flow Year 2 Project B -$130,000 11,500 63,500 95,000 55,000 Project W -$125,000 80,000 47,500 37.500 40,000 Cash Flow Year 3 Cash Flow Year 4 Required: a. What is the profitability index for each project? b. If the projects are independent, which would you accept according to the profitability index criterion? If these projects are mutually exclusive, which would you accept according to the PL criterion? d. Is there any problem with using the Pl to evaluate these projects? c Paragraph B 1 2