Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $600,000 and has a present value of cash flows of $2,250,000. Project 2 requires an initial investment of $4 million and has a present value of cash flows of $7 million. 1. Compute the profitability index for each project. Profitability Index I Choose Denominator: Choose Numerator: = = Profitability Index Profitability index Project 1 Project 2 2. Based on the profitability index, which project should the company prefer? Project 1 Project 2