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Distant-Light Ltd has decided to invest in renewable energy sources to meet part of its energy needs for production. It is considering solar power versus

Distant-Light Ltd has decided to invest in renewable energy sources to meet part of its energy needs for production. It is considering solar power versus wind power. The following has been determined. Solar Wind Present value of annual cash flows $52,580 $128,450 Initial investment $39,500 $105,300 Based on the Profitability Index, which energy source should be chosen? Why? Wind as it is less profitable Wind as it is more profitable Solar as it is more profitable Solar as it is less profitable

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