1. Project A and project B both require an initial investment of $100 and have a 5-year life. Information regarding both projects is presented in the table below:

	Project A	Project B
Net present value (NPV)	$43	$47
Profitability Index (PI)	??	1.47
Internal rate of return (IRR)	24%	21%

1. Calculate the Profitability Index (PI) for project A. (2 marks)
2. If project A and B are independent, which project/projects would be accepted? Why? (2 marks)
3. If project A and B are mutually exclusive, which project/projects would be accepted? Why? (2 marks)