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Which of the statements is true about cbn products inc

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Reference no: EM132811085

Problem 1: CBN Products, Inc. is considering to invest in one of two projects. Both projects have a net present value of P25,000; however Project #1 requires an initial investment of P700,000 while Project #2 requires an initial investment of P300,000. Based on this information, which of the following statements is true?

A. There is not enough information to determine the profitability index of either project

B. Project #1 will have a higher profitability index

C. Project #2 will have a higher profitability index

D. Both project will have the same profitability index

Reference no: EM132811085

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