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You Are Considering Two Independent Projects Both of Which Have 8%8 \%

question 38

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You are considering two independent projects both of which have been assigned a discount rate of 8%8 \% . Based on the profitability index, what is your recommendation concerning these projects?
 You are considering two independent projects both of which have been assigned a discount rate of  8 \% . Based on the profitability index, what is your recommendation concerning these projects?    A) You should accept both projects since both of their PIs are positive. B) You should accept project A since it has the higher PI. C) You should accept both projects since both of their PIs are greater than 1. D) You should only accept project B since it has the largest PI and the PI exceeds 1. E) Neither project is acceptable.

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