You Are Considering Two Independent Projects Both of Which Have

Multiple Choice

You are considering two independent projects both of which have been assigned a discount rate of 15 percent.Based on the profitability index,what is your recommendation concerning these projects?

$\begin{array}{l}\text { Project A }\\\begin{array}{cc}\text { Year } & \text { Cash Flow } \\\hline 0 & -\$ 46,000 \\1 & \$ 32,000 \\2 & \$ 27,000\end{array}\end{array}$ $\begin{array}{l}\text { Project B }\\\begin{array}{cc}\text { Year } & \text { Cash Flow } \\\hline 0 & -\$ 50,000 \\1 & \$ 18,000 \\2 & \$ 54,000\end{array}\end{array}$

A) You should accept both projects.
B) You should reject both projects.
C) You should accept project A and reject project B.
D) You should accept project B and reject project A.
E) You should accept project A and be indifferent to project B.