Suppose the following two independent investment opportunities are available to Relax, Inc. The appropriate discount rate is 9 percent.

Year	Project Alpha	Project Beta
0	$4,700	$6,300
1	2,400	1,400
2	2,300	4,700
3	1,500	4,100

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