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1 2 3 A B C D E F G H J The Sloan Corporation is trying to choose between the following two mutually

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1 2 3 A B C D E F G H J The Sloan Corporation is trying to choose between the following two mutually exclusive design projects. If the required return is 10 percent, what is the profitability index for each project? What is the NPV for each project? 4567 869 Annual cash flows: Year 0 Year 1 Year 2 Required return 10 Year 3 11 12 13 14 15 16 17 18 19 20 21 5555 (51,000) 24,800 $ 24,800 $ 24,800 $ SSSS (14,400) 7,800 7,800 7,800 10% Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel function to answer this question. Profitability index (1) Profitability index (II) NPV (1) NPV (II) Sheet 1

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