Question: Problem 5-15 Profitability index Consider the following projects: Project D E Cash Flows ($) Co -11,700 -21,700 Ci 23,400 37,975 Assume that the projects are

Problem 5-15 Profitability index Consider the following projects: Project D E

Problem 5-15 Profitability index Consider the following projects: Project D E Cash Flows ($) Co -11,700 -21,700 Ci 23,400 37,975 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 12%. 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

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