The following are the cash flows of two projects

The following are the cash flows of two projects:

18.

The following are the cash flows of two projects:

 

Year Project A Project B
0 %u2212$230 %u2212$230
1 110 130
2 110 130
3 110 130
4 110

 

a. 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

 

b. Does the profitability index rank the projects correctly?
Yes
No