Question: Moe's Tablet Warehouse is evaluating two potential projects. Project A has an initial investment of $800 and yearly cash flows of $520, $610, and $710.

Moe's Tablet Warehouse is evaluating two potential projects. Project A has an initial investment of $800 and yearly cash flows of $520, $610, and $710. Project B has an initial investment of $500 and yearly cash flows of $305, $405, and $505. Moe's has a rate of return of 7%. Which project has the greater profitability index and what is its PI? Project B. Its Pl is 0.823. Project A. Its Pl is 0.998. Project B. Its Pl is 1.102. Project A. Its Pl is 1.062. Both projects have the same Pl of 1.000

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