You are considering two independent projects both of which have been assigned a discount rate of 9 %. 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 9 %. 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 9 %. 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