Suppose the following two independent investment opportunities are available to Scott, Inc. The appropriate discount rate is 8 percent.

Year Project Alpha Project Beta0

0 $2,500 $4,100

1 11,300 850

2 21,200 2,500

3 3950 3,000

Compute the profitability index for each of the two projects.(Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).)

Profitability IndexProject Alpha______Project Beta______

Which project(s) should the company accept based on the profitability index rule?Both projects/ProjectBeta/Neither project/Project Alpha