Data for two projects, having the same useful life follows
Project Flower: initial investment, $90,000; present value of net cash flows, $140,000.
Project Plant: initial investment, $88,000; present value of net cash flows, $148,000.
Using the profitability index method, which of the two projects should be accepted?
| Neither project should be accepted. |
| Either project may be accepted. |
| Project Plant |
| Project Flower |