Consider the following projects:

Cash Flows ($)

Project C₀C₁

D -11,900 23,800

E -21,900 38,325

Assume that the projects are mutually exclusive and that the opportunity cost of capital is 8%.

a.Calculate the profitability index for each project.(Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project Profitability Index

D ?

E ?

b-1.Calculate the profitability-index using the incremental cash flows.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Profitability-index= ?