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Al-Alis firm is considering two projects and the cash flows associated with them are shown in the following table. The firm has set its cost of capital at 11 %

Year	Project A	Project B
0	- SR 200	- SR 200
1	80	100
2	80	100
3	80	100
4	80

4- Compute the Profitability Index (PI) for each project?

	Project A	Project B
Profitability Index (PI)

5- In light of your answers above, suppose that these two projects might be mutually exclusive or independent. According to these two assumptions, fill in the blanks in the table below with the suitable answer:

Points	Investment Criteria	If A and B are mutually exclusive, then I would select	If A and B are independent, then I would select
	PBP
	NPV
	IRR
	PI