Project A costs $47,800 with cash inflows of $34,200 in Year 1 and $28,700 in Year 2. Project B costs $63,200 with cash inflows of $21,900 in Year 1 and $59,200 in Year 2. These projects are independent and have an assigned discount rate of 15 percent. Based on the profitability index, what is your recommendation concerning these projects?

Question 2 options:

Accept both projects

Reject both projects

Accept Project A and reject Project B

Accept Project B and reject Project A

Accept either, but not both projects