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Consider the following two mutually exclusive projects: Year Cash Flow ( A ) Cash Flow ( B ) 0 $ 3 5 5 , 0

Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0$ 355,000$ 47,500
140,00023,500
260,00021,500
360,00019,000
4435,00014,100
e-1.
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.)
e-2. If you apply the profitability index criterion, which investment will you choose?
multiple choice 5
Project A
Project B

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