Question: Question 20 (1 point) You are considering two independent projects with the following cash flows: Project A: $42280 at t=1 and $36010 at t=2; Project
Question 20 (1 point) You are considering two independent projects with the following cash flows: Project A: $42280 at t=1 and $36010 at t=2; Project B: $5,600 at t=1 and $35,750 at t=2. Project A costs $67,700 and Project B costs $32,000 (all costs incurred at t=0). The appropriate discount rate is 9.5%. Based on the profitability index (PI), what is your recommendation concerning these projects? Assume that you have sufficient funding to choose both projects simultaneously. Accept Project A only. Accept Project B only. Accept both Project A and B. Reject both Project A and B
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