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11. The Robb Computer Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 Cash Flow (1) -$44,000 26,000 26,000

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11. The Robb Computer Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 Cash Flow (1) -$44,000 26,000 26,000 26,000 Cash Flow (II) -$ 16,200 10,000 10,000 10,000 As a financial analyst for Robb Computer, you are asked the following questions. The discount rate is 10 percent. (20 pts) a. Calculate the profitability index for both projects. Based on profitability index (PI) decision rule, which project should be chosen? Show your calculations. b. Calculate the IRR for both projects. Based on IRR, which project should be chosen? Show your calculations. c. Calculate the NPV for both projects. Based on NPV, which project should be chosen? Show your calculations. d. Is your decision under profitability index rule and IRR same as your decision based on NPV? If not, explain why

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