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40 The Whenworth Corporation is trying to choose between the following two mutually exclusive design projects 10 po Year Cash Flow ) Cash Flow (1)

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40 The Whenworth Corporation is trying to choose between the following two mutually exclusive design projects 10 po Year Cash Flow ) Cash Flow (1) 0 $80,000 -$38,000 1 31,000 13,000 2 40,000 27.500 3 46.000 19,500 bo 0-1. If the required return is 14 percent, what is the profitability index for each project (Do not round intermediate calculations and round your answers to 3 decimal places, e.g. 32.161.) 3-2. If the company applies the profitability index decision rule, which project should it take b-1. If the required return is 14 percent, what is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e... 32.16 b-2. If the company applies the net present value decision rule, which project should it Take? a 1. Project

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