Question: The following are calculated for the two projects being evaluated. Project 1: The cash payback period =4.5 years; NPV =$12,600, Profitability Index =5.8% Project 2:

The following are calculated for the two projects being evaluated. Project 1: The cash payback period =4.5 years; NPV =$12,600, Profitability Index =5.8% Project 2: The cash payback period = 5.2 years; NPV = 8,500; Profitability Index = 9.6\% Accept Project 1 only Accept Project 2 only Accept both Projects 1 and 2 Not enough information to make decision
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