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Profitability index.Given the discount rate and the future cash flow of each project listed in the...

Profitability index.Given the discount rate and the future cash flow of each project listed in the following​ table, use the PI to determine which projects the company should accept.

  Cash Flow

Project A

Project B

  Year 0

−​$2,000,000

−​$2,600,000

  Year 1

​$400,000

​$1,300,000

  Year 2

​$550,000

​$1,150,000

  Year 3

​$700,000

​$1,000,000

  Year 4

​$850,000

​$850,000

  Year 5

​$1,000,000

​$700,000

  Discount rate

6​%

14​%

What is the PI of project​ A?

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