Suppose the following two independent investment opportunities are available to a company. The appropriate discount rate is 12 percent.

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.)

b. Which project(s), if either, should the company accept based on the profitability index rule? multiple choice

A. Project Alpha

B. Project Beta

C. Neither project

D. Both projects

Year0123ProjectAlpha$5,3002,7002,6001,650ProjectBeta$6,9001,5505,3004,400 \begin{tabular}{|l|l|} \hline & Profitability Index \\ \hline Project Alpha & \\ \hline Project Beta & \\ \hline \end{tabular}