Consider the following 2 projects

a. Calculate the profitability index for each at an interest rate of 6%

b. Determine which project would you consider using incremental PI analysis?

\begin{tabular}{|c|c|c|} \hline N & Project A1 & Project A2 \\ \hline 0 & $900,000 & $1,200,000 \\ \hline 1 & $400,000 & $200,000 \\ \hline 2 & $340,000 & $300,000 \\ \hline 3 & $300,000 & $350,000 \\ \hline 4 & $240,000 & $440,000 \\ \hline 5 & $200,000 & $400,000 \\ \hline 6 & $150,000 & $350,000 \\ \hline \end{tabular}