8 0.5 points The Wherworth Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow ( Cash Flow (1) 0 -$88.000 -$56.000 1 37.900 11,400 2 48,000 35,500 3 28,000 29,500 eBook References a-1. If the required return is 11 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.) a-2. If the company applies the profitability index decision rule, which project should it take? b-1. If the required return is 11 percent, what is the NPV for each project? (Do not round intermediate culations and round your answers to 2 decimal places, e.g., 32.16.) b-2. If the company applies the net present value decision rule, which project should it take? a-1. Project Project II a-2. b-1. Project 1 Project II 9 05 Consider the following two mutually exclusive projects Your Cash Flow (A) Cash Flow (a) O -$425.000 -$40,000 1 44,000 20.400 62.000 13.300 3 79.000 18,600 4 540,000 15.400 lo References The required return on these investments is 10 percent. a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.. 32.16.) b. What is the NPV for each project? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the IRR for each project? (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the profitability index for each project? (Do not round intermediate calculations and nd your answers to 3 decimal places, e.g. 32.161.) e. Based on your answers in (a) through (d), which project will you finally choose? years years a. Project A Project B b. Project A Project B c. Project A Project B d. Project A Project B % % e. Proctoring Enabled: Chapter 8 Homework Assignment 10 0.5 point Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 19 percent Year Project M Project -$140,000 -$355.000 1 63,500 152,500 2 81,500 180,000 3 72,500 137,500 4 58,500 110,000 eBook References a. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept? % % a. Project M Project N b. Project M Project N c. Accept project