Question: Problem 5-15 Profitability index Consider the following projects: Project D E Cash Flows ($) Co -11,400 -21, 40e C1 22,800 37,450 Assume that the projects

Problem 5-15 Profitability index Consider the following projects: Project D E Cash Flows ($) Co -11,400 -21, 40e C1 22,800 37,450 Assume that

Problem 5-15 Profitability index Consider the following projects: Project D E Cash Flows ($) Co -11,400 -21, 40e C1 22,800 37,450 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 8%. 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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