Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $480,000 and has a present value of cash flows of $2,000,000. Project 2 requires an initial investment of $4 million and has a present value of cash flows of $8 million. 1. Compute the profitability index for each project. Profitability Index 7 Choose Denominator: Choose Numerator: ch = = Profitability Index Profitability index Project 1 Project 2 2. Based on the profitability index, which project should the company prefer? O Project 1 O Project 2