You are a financial analyst for Green Country Products, Inc. You are evaluating two different capital budgeting proposals. However, because the proposals are mutually exclusive, Green Country can only accept one of them. You must determine which of the proposals is better and should be adopted. The following table provides Green Countrys cost of capital (i.e., discount rate), net present value (NPV), and internal rate of return (IRR) for the two proposals. Which proposal should be selected?

	Project A	Project B
NPV	$ 1.85 million	$ 2.25 million
IRR	18.0%	16.5%
Discount Rate	14.0%	14.0%

Group of answer choices

Choose Project B because it has the greater NPV.

Choose Project A because it has the greater IRR.

None of these are correct.

Calculate the profitability index (PI) and choose the project that is favored by two of the decision criteria (i.e., best two out of three)