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Please help me to explain it. Thank you. You are considering two independent projects both of which have been assigned a discount rate of 15

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Please help me to explain it. Thank you.

You are considering two independent projects both of which have been assigned a discount rate of 15 percent. Based on the profitability index, what is your recommendation concerning these projects? Project A Project B Year Cash Flow Year Cash Flow 0 -46,000 0 -50,000 1 32,000 1 18,000 2 27,000 2 54,000 You should accept project A and reject project B You should accept project B and reject project A You should reject both projects You should accept both projects You should accept project A and be indifferent to project B

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