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You have been tasked with choosing between two project options. The first has an initial cost of $25,000 and a project profitability index of 30%.
You have been tasked with choosing between two project options. The first has an initial cost of $25,000 and a project profitability index of 30%. The second option has an initial cost of $10,000 and a project profitability index of 15%. Which do you suggest to management? The $25,000 project as it has a higher profitability index. The $10,000 project as it has a lower initial investment Either project will create profit, so it does not matter which one you choose
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