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Courtesy Caravan, Inc. may invest in only one of three new projects. Due to other...

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Courtesy Caravan, Inc. may invest in only one of three new projects. Due to other capital constraints, they have decided to base their decision on each project's profitability index. The company has a cost of capital of 9.0% Year 3 Cash Flows (millions) Year 0 Year 1 Year 2 (360) 140 (365) (460) Year 4 240 Project A Project B Project C 230 a. What is the profitability index for each project? (Round your answers to four decimal places.) Project A Project B Project b. Which project should you select based upon the profitability Index? Project B Project Project A

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