Yokam Company is considering two alternative projects. Project $1$ requires an initial investment of $$510,000$ and has a present value of all its cash flows of $$1,800,000.$ Project $2$ requires an initial investment of $$4$ million and has a present value of all its cash flows of $$7$ million.

$($a$)$ Compute the profitability index for each project.

$($b$)$ Based on the profitability index, which project should the company select?

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Required B

Compute the profitability index for each project.

$\backslash$table$[[$Profitability Index$],[,$Numerator:,$1,$Denominator:,$=,$Profitability Index,$],[,,1,,=,$Profitability index,$],[$Project $1,,,,,0,],[$Project $2,,,,,0,]]$