Cori's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) 0 $64,000 $38,800 1 28,900 17,600 2 28,900 17,600 3 28,900 17,600

1)If the required return is 11 percent, what is the profitability index for Project I? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)

2)If the required return is 11 percent, what is the profitability index for Project II? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)

3)If the company applies the profitability index decision rule, which project should the firm accept? 4)