Question $22$

You are considering two independent projects with cash flow information below. Both have been assigned a discount rate of $8\%.$ Based on the profitability index, what is your recommendation concerning these projects?

Year Project A Project B

$0-$$$33,500-$$$82,000$

$120,00055,000$

$223,00041,000$

Group of answer choices

You should only accept project B since it has the largest PI and the PI exceeds $1$

You should accept both projects since both of their PIs are greater than $1$

You should accept both projects since both of their PIs are positive

You should accept project A since it has the higher PI

Neither project is acceptable