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Problem 8-20 Profitability Index (LO3) Consider the following projects: Project A B -$3,100 - 3,100 C1 +$3,000 + 2,440 C2 +$2,200 + 1,928 a. Calculate
Problem 8-20 Profitability Index (LO3) Consider the following projects: Project A B -$3,100 - 3,100 C1 +$3,000 + 2,440 C2 +$2,200 + 1,928 a. Calculate the profitability index for A and B assuming a 26% opportunity cost of capital. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Project A B Profitability index 1.22 1.02 b. According to the profitability index rule, which project(s) should you accept? Project A O Project B O Both O Neither
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