Question
Coris sausage corp is trying to choose between the following two mutually exclusive design projects: Year cashflow (1) cashflow (2) 0 -55,000 -29800 1 26200
Coris sausage corp is trying to choose between the following two mutually exclusive design projects: Year cashflow (1) cashflow (2) 0 -55,000 -29800 1 26200 14700 2 26200 14700 3 26200 14700 a-1. If the required return is 10% what is the profitability for each project? (round your answers to three decimal places) a-2. if the company applies the profitability index decision rule, which project should the firm accept? 1 or 2. b-1. What is the NPV for each project? (round answers to two decimal places) b-2. If the company applies the NPV decision rule, which project should it choose? 1 or 2
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