You are considering two independent projects both of which have been assigned a discount rate of 15 percent. Based on the profitability index, what is your recommendation concerning these projects?

Project A Project B

Year Cash Flow Year Cash Flow 0 $-46,000 0 $-50,000

1 $32,000 1 $18,000

2 $27,000 2 $54,000 A. You should accept both projects. B. You should reject both projects. C. You should accept project A and reject project B. D. You should accept project B and reject project A. E. You should accept project A and be indifferent to project B.