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Con's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 1 2 3 Cash Flow d) -$ 51,000

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Con's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 1 2 3 Cash Flow d) -$ 51,000 25.000 25,000 25,000 Cash Flow (1) -$25,800 13,500 13,500 13.500 a-1. If the required return is 12 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.) Profitability Index Project Project 1 a-2 If the company apples the profitability Index decision rule, which project should the firm accept? Project O Project II b-1. What is the NPV for each project? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answers to 2 decimal places. e.... 3216.) NPV Project Projectil b-2. If the company applies the NPV decision rule, which project should It take? O Project II O Project

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