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The Project Cash Flows and Profitability Indexes for Projects a and B

question 22

Multiple Choice

The project cash flows and Profitability Indexes for Projects A and B are provided in the table below. If the two projects are mutually exclusive, which project should you select?  Project A  Project B  Year 0 $1,900$2,000 Year 1 $2,500$1,550 Year 2 $1,500$1,900 PI 1.74111.3923\begin{array} { | c | c | c | } \hline & \text { Project A } & \text { Project B } \\\hline \text { Year 0 } & - \$ 1,900 & - \$ 2,000 \\\hline \text { Year 1 } & \$ 2,500 & \$ 1,550 \\\hline \text { Year 2 } & \$ 1,500 & \$ 1,900 \\\hline \text { PI } & 1.7411 & 1.3923 \\\hline\end{array}


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