Consider the following projects:

Project C$0$ C$1$ C$2$

A $$$ $2,650+$$ $2,550+$$ $1,750$

B $2,650+1,990+1,838$

Calculate the profitability index for A and B assuming a $21\%$ opportunity cost of capital.

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

multiple choice

Project A

Project B Incorrect

Both

Neither