Upton Evaluates Future Projects by Using the Profitability Index

Multiple Choice

Upton evaluates future projects by using the profitability index. The company is currently reviewing five similar projects and must choose one of the following:

Which project should Upton select if the decision is based entirely on the profitability index?

A) Project 1.
B) Project 2.
C) Project 3.
D) Project 4.
E) Project 5.