Consider the following projects:

Project		C0				C1				C2
A			$	3,000		+	$	2,900		+	$	2,100
B				3,000		+		2,340		+		1,908

a.	Calculate the profitability index for A and B assuming a 24% opportunity cost of capital. (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Project	Profitability index
A
B

b.

According to the profitability index rule, which project(s) should you accept?

	Project A
	Project B
	Both
	Neither