Suppose the following two independent investment opportunities are available to Relax, Inc. The appropriate discount rate is 11 percent.

Year	Project Alpha	Project Beta
0	$3,100	$4,700
1	1,600	1,000
2	1,500	3,100
3	1,100	3,300

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 Beta
	Project Alpha