Question: Godfall Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 6%. Calculate the profitability index for project B.

Godfall Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 6%. Calculate the profitability index for project B. (Round to 3 decimals)

Year	Project A	Project B
0	-8,000,000	-3,250,000
1	2,000,000	850,000
2	2,000,000	850,000
3	2,000,000	850,000
4	2,000,000	850,000
5	2,000,000	850,000

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