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Refer to two projects with the following cash flows: Year Project A Project B 0 -$180 -$180 1 80 95 2 80 95 3 80

Refer to two projects with the following cash flows:

Year Project A Project B
0 -$180 -$180
1 80 95
2 80 95
3 80 95
4 80

If the opportunity cost of capital is 13%, what is the profitability index for each project? (Round your answers to 4 decimal places.)

Project A
Project B

Does the profitability index rank the projects A and B correctly?

(Click to select) Yes No

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