Suppose the following two independent investment opportunities are available to Relax, Inc. The appropriate discount rate is 10 percent.

Year	Project Alpha	Project Beta
0	$4,900	$6,500
1	2,500	1,450
2	2,400	4,900
3	1,550	4,200

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.)

	Profitability Index
Project Alpha
Project Beta

b.

Which project should the company accept based on the profitability index rule?

	Project Alpha
	Project Beta