Question: Hi all, Can someone please answer this question. Please list all steps! Thanks! Consider the following projects: Cash Flows ($) Project C 0 C 1

Hi all,

Can someone please answer this question. Please list all steps! Thanks!

Consider the following projects:

Cash Flows ($)
Project	C₀	C₁
D	10,300	20,600
E	20,300	35,525

Assume that the projects are mutually exclusive and that the opportunity cost of capital is 9%.

a. Calculate the profitability index for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project	Profitability Index
D
E

b-1. Calculate the profitability-index using the incremental cash flows. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Profitability-index

b-2. Which project should you choose?

	Project D
	Project E

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