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Suppose the following two independent investment opportunities are available to Fitz, Inc. The appropriate discount rate is 12 percent. Year 0 Project Alpha $4,300 2,200
Suppose the following two independent investment opportunities are available to Fitz, Inc. The appropriate discount rate is 12 percent. Year 0 Project Alpha $4,300 2,200 2,100 1,400 Project Beta $5,900 1,300 4,300 3,900 WN- 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 3. Which projects), ir ei b. Which project(s), if either, should the company accept based on the profitability index rule? Both projects Project Beta Neither project Project Alpha
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