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The following are the cash flows of two projects: Year Project A Project B 0 $ 240 $ 240 1 120 140 2 120 140

The following are the cash flows of two projects: Year Project A Project B 0 $ 240 $ 240 1 120 140 2 120 140 3 120 140 4 120 If the opportunity cost of capital is 12%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

ProjectProfitability IndexA1.5187B1.4011

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