QUESTIONS TO ANSWER: PLEASE ONLY ANSWER IF YOU CAN ANSWER ALL QUESTIONS.

1. What is the PI of project A?

2. Project A should be accepted or rejected?

3. What is the PI of project B?

4. Project B should be accepted or rejected?

Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, :, use the Pl to determine which projects the company should accept. What is the Pl of project A? (Round to two decimal places.) i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Year o Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate Project A - $2,200,000 $300,000 $500,000 $700,000 $900,000 $1,100,000 Project B - $2,700,000 $1,350,000 $1,150,000 $950,000 $750,000 $550,000 12% 8% Print Done