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a) What is the PI of project A? b) Project A should be (accepted/rejected). c) What is the PI of project B? d) Project B

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a) What is the PI of project A?

b) Project A should be (accepted/rejected).

c) What is the PI of project B?

d) Project B should be (accepted/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.) - X Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate Project A - $1,900,000 $150,000 $350,000 $550,000 $750,000 $950,000 6% Project B - $2,500,000 $1,250,000 $1,050,000 $850,000 $650,000 $450,000 14% Print Done

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