If the opportunity cost of capital is 11 what is the

Question

The following are the cash flows of two projects:

Year   Project A   Project B

0      −$200          −$200

1         80              100

2        80                 100

3       80                100

4        80

If the opportunity cost of capital is 11%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Project       Profitability index

   A         

  B

Is the project with the highest profitability index also the one with the highest NPV?