The following information is available for two potential investments by Panda Company: Project Red Project Green $40,000 Initial investment $70,000 11,200 Net annual cash flow 19,300 8,581 Net present value 25,875 Salvage value 5,000 0 Useful life 6 yrs. 8 yrs. Using profitability index as a screening method, Panda should: Accept Project Green because it has a lower profitability index. Accept Project Red because it has a higher profitability index. Accept Project Green because it has a higher profitability index. Accept Project Red because it has a lower profitability index