Data for two projects, having the same useful life follows.Project Flower: initial investment, $90,000; present value of net cash flows, $140,000. Project Plant: initial investment, $88,000; present value of net cash flows, $148,000.
Using the profitability index method, which of the two projects should be accepted?
Neither project should be accepted.
- Either project may be accepted.
- Project Plant
- Project Flower