Given the discount rate and the future cash flow of each project listed in the following table, use the PI to determine which projects the company should accept.

What is the PI of project A?

What is the PI of project B?

2 Cash Flow | Year 0 Year 1 Year Year 3 Year 4 Year 5 Discount rate - $1,900,000 S350,000 S 500,000 S650,000 $800,000 $950,000 6% Project B - $2,400,000 $1,200,000 $1,050,000 S900,000 $750,000 S600,000 15%