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Problem 5-15 Profitability index Consider the following projects: Projeot D E Cash Flows (0) 90 - 11.000 -21.600 G- 22.800 37.275 Assume that the projects
Problem 5-15 Profitability index Consider the following projects: Projeot D E Cash Flows (0) 90 - 11.000 -21.600 G- 22.800 37.275 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 9%. a. Calculate the profitability Index for each project. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Project Profitability Index D E b-1. Calculate the profitability-Index using the incremental cash flows. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Profitability-index b-2. Which project should you choose? O Project D O Project E
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