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Consider the following projects: Project C 0 C 1 C 2 A -$2,600 +$2,500 +$1,700 B -$2,600 +$1,940 +1,828 A) Calculate the profitability index for
Consider the following projects:
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A) Calculate the profitability index for A and B assuming a 22% opportunity cost of capital. (Do not round intermediate calculations. Round your answers to 4 decimal places.)
Project | Profitability index |
A | |
B | |
According to the profitability index rule, which project(s) should you accept? *Porject A *Project B *Both *Neither |
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