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The following are the cash flows of two projects: Year Project A Project B 0 $ 380 $ 380 1 210 280 2 210 280

The following are the cash flows of two projects: Year Project A Project B 0 $ 380 $ 380 1 210 280 2 210 280 3 210 280 4 210 If the opportunity cost of capital is 11%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.) Project Profitability index A B Is the project with the highest profitability index also the one with the highest NPV? Yes No

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