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Calculate the profitability index for project

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Consider the following projects:

Cash Flows ($)ProjectC0C1D-11,20022,400E-21,20037,100Assume that the projects are mutually exclusive and that the opportunity cost of capital is 12%.

a. Calculate the profitability index for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

ProjectProfitability IndexDEb-1. Calculate the profitability-index using the incremental cash flows. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Profitability-index           

b-2. Which project should you choose?

Project DProject E

Reference no: EM131866902

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