Consider the following projects:

Cash Flows, $Project. C0 C1 D. 11,600 +23,200 E. 21,600 +37,800

Assume that the projects are mutually exclusive and that the opportunity cost of capital is 11%.

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 ?

b-2.Which project should you choose? Project D ? Project E ?