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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 354,000 $ 48,000 1 41,000 23,600 2 61,000 21,600

Consider the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)
0 $ 354,000 $ 48,000
1 41,000 23,600
2 61,000 21,600
3 61,000 19,100
4 436,000 14,200

Whichever project you choose, if any, you require a return of 14 percent on your investment.

What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)

Project A ?

Project B?

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