The following are the cash flows of two projects:

Year	Project A	Project B
0	$330	$330
1	160	230
2	160	230
3	160	230
4	160

a.	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.)

Project	Profitability Index
A
B

b.

Does the profitability index rank the projects correctly?

	Yes
	No