Question: Problem 8-23 Profitability Index (LO3) Consider the following projects: Project A -$ 2,100 B -2,100 G +$ 2,000 +1,440 C +$ 1,200 +1,728 a.
Problem 8-23 Profitability Index (LO3) Consider the following projects: Project A -$ 2,100 B -2,100 G +$ 2,000 +1,440 C +$ 1,200 +1,728 a. Calculate the profitability Index for A and B assuming a 22% opportunity cost of capital. Note: Do not round Intermediate calculations. Round your answers to 4 decimal places. Answer is complete but not entirely correct. Profitability Index Project A B (1.9575) 0.8688 b. According to the profitability Index rule, which project(s) should you accept? Project A Project B Both Neither
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