Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $510,000 and has a present value of cash flows of $1,950,000.0. Project 2 requires an initial investment of $4,000,000 and has a present value of cash flows of $6,000,000.

1.Compute the profitability index for each project.

2.Based on the profitability index, which project should the company prefer?

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. Profitability Index Choose Numerator: Choose Denominator: Profitability Index = Profitability index Project 1 0 Project 2 0 Based on the profitability index, which project should the company prefer? Based on the profitability index, which project should the company prefer