2) AND WHAT IS THE PI OF PROJECT B?

Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, s , use the Pl to determine which projects the company should accept. What is the PI of project A? | | (Round to two decimal places.) Cash Flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate Project A - $1,800,000 $300,000 $450,000 $600,000 $750,000 $900,000 8% Project B - $2,500,000 $1,250,000 $1,100,000 $950,000 $800,000 $650,000 16%