Using the Profitability Index, Which of the Following Projects Should

Multiple Choice

Using the profitability index, which of the following projects should be accepted? $$\begin{array} { l l l } \text { Project M: } & \text { NPV } = \$ 60,000 & \text { NINV } = \$ 200,000 \\\text { Project N: } & \text { NPV } = \$ 10,000 & \text { NINV } = \$ 30,000 \\\text { Project O: } & \text { NPV } = \$ 2,000 & \text { NINV } = \$ 5,000\end{array}$$

A) Project M
B) Project N
C) Project O
D) All projects should be accepted