Profitability Index
Profitability Index. Consider the following projects: Project C0 C1 C2 A -$2,100 +$2,000 +$1,200 B - 2,100 + 1,440 + 1,728 Calculate the profitability index for A and B assuming a 22 percent opportunity cost of capital. b. Use the profitability index rule to determine which project(s) you should accept (i) if you co