You are considering two independent projects both of which have been assigned a discount rate of 15 percent.Based on the profitability index,what is your recommendation concerning these projects?
A) You should accept both projects.
B) You should reject both projects.
C) You should accept project A and reject project B.
D) You should accept project B and reject project A.
E) You should accept project A and be indifferent to project B.

Question

You are considering two independent projects both of which have been assigned a discount rate of 15 percent.Based on the profitability index,what is your recommendation concerning these projects?  
A) You should accept both projects. 
B) You should reject both projects. 
C) You should accept project A and reject project B. 
D) You should accept project B and reject project A. 
E) You should accept project A and be indifferent to project B.

Quizplus · Accepted Answer

The Answer of You are considering two independent projects both of which have been assigned a discount rate of 15 percent.Based on the profitability index,what is your recommendation concerning these projects?  
A) You should accept both projects. 
B) You should reject both projects. 
C) You should accept project A and reject project B. 
D) You should accept project B and reject project A. 
E) You should accept project A and be indifferent to project B.

You Are Considering Two Independent Projects Both of Which Have