Consider projects A and B with the following cash flows:

C0 C1 C2 C3

A ( $ 27) (+ $ 16) (+ $ 16) (+ $ 16)

B ( 52) (+ 27) (+ 27) (+ 27)

a-1. What is the NPV of each project if the discount rate is 10%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a-2. Which project has the higher NPV?

b-1. What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.)