Project a costs $45,000 with cash inflows of $34,200 in year 1 and $28,700 in year 2. Project b costs $59,200 with cash inflows of $21,900 in year 1 and $59,200 in year 2. These projects are independent and have an assigned discount rate of 15 percent. Based on the profitability index, what is your recommendation concerning these projects?.
