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Evaluate the following projects, using the net present value and profitability index criteria. Assume a cost of capital of 8%. Green Project $160,000 Initial Cash

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Evaluate the following projects, using the net present value and profitability index criteria. Assume a cost of capital of 8%. Green Project $160,000 Initial Cash Outflow Year 1 Cash flow Year 2 Cash flow Yellow Project $160,000 95,000 80,000 69,000 T Year 3 Cash flow 71,000 85,000 50.000 Required: Which project is acceptable and why? Paragraph B IDEE

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