Calculate the profitability index for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Calculate the profitability-index using the incremental cash flows? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Consider the following projects: Solution a) project d=Pv of Cash inflow/Pv cash out flow=$21,200*Pv of 1st year/10,600 =0.9009*21,200/10,600=19,099/10,600=1.8 Project E=$36,050*0.9009/20,600=32,477/20,600=1.58 b-1 Profitability index=(36,050-21,200)*0.9009/10,000=13,378/10,000=1.34.