Question A and B

Suppose the following two independent investment opportunities are available to a company. The appropriate discount rate is 8 percent. a. Compute the profitability index for each of the two projects. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) b. Which project(s), if either, should the company accept based on the profitability index rule? Project Alpha Project Beta Neither project Both projects