Question: PLEASE ANSWER ACCORDING TO THE PARAMETERS: (Do not round intermediate calculations. Round your answers to 4 decimal places.) The following are the cash flows of

PLEASE ANSWER ACCORDING TO THE PARAMETERS: (Do not round intermediate calculations. Round your answers to 4 decimal places.)

The following are the cash flows of two projects:

Year Project A Project B
0 $ 350 $ 350
1 180 250
2 180 250
3 180 250
4 180

If the opportunity cost of capital is 11%, what is the profitability index for each project?

Project Profitability index
A
B

Is the project with the highest profitability index also the one with the highest NPV?
Yes
No

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