Multiple Choice
You are considering two independent projects with the following cash flows, both of which have been assigned a discount rate of 9.5 %. Based on the profitability index (PI) , what is your recommendation concerning these projects?
A) Accept Project A only.
B) Accept Project B only.
C) Accept both Project A and B.
D) Reject both Project A and B.
E) You cannot use the PI method of analysis in this situation.
Correct Answer:

Verified
Correct Answer:
Verified
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