Suppose that you are to choose one from the following two projects:

Project A:

an initial investment of $30,000 and cash flows of $8,000 per year over the next 6 years. The required rate of return is 20%.

Project B:

an initial investment of $28,000 and cash flows of $5,500 per year over the next 9 years. The required rate of return is 15%.

Use the profitability index approach to determine which of the two above would you choose