Check my work 4 The Bosa Corporation is trying to choose between the following two mutually exclusive design projects: Cash Flow Cash Flow Year (I) -$ 72 , 000 32,000 32,000 32,000 (II) -$17,200 9,300 9,300 9,300 nts C 2 3 eBook a-1 f the required return for both projects is 10 percent, what is the profitability index for both projects? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Print Profitability Index Project eferences T Project II a-2 If the company applies the profitability index decision rule, which project should the firm accept? O Project I O Project Il b-1 What is the NPV for both projects? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.) NPV Project I Project II b-2 If the company applies the NPV decision rule, which project should it choose? 4 of 5 Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $297 million. The fixed asset will be depreciated straight-Iine to zero over its three-vear tax life, after which time it will be worthless. The project is estimated to generate $2,170,000 in annual sales, with costs of $865,000. The project requires an initial investment in net working capital of $390,000, and the fixed asset will have a market value of $255,000 at the end of the project. If the tax rate is 35 percent, what is the project's Year O net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g.. 1,234,567. A negative answer should be indicated by a minus sign.) Cash Flow Year 0 t 1194750 Year 1 nces 1194750 Year 2 Year 3 If the required return is 9 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV