Cori's Sausage Corporation is trying to choose between the following two mutually exclusive design projects:

Year	Cash Flow (I)				Cash Flow (II)
0	$	65,000			$	39,800
1		29,200				18,000
2		29,200				18,000
3		29,200				18,000

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.)

a-2.	If the company applies the profitability index decision rule, which project should the firm accept?
	multiple choice 1 Project I 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.g., 32.16.)

b-2.	If the company applies the NPV decision rule, which project should it take?
	multiple choice 2 Project II Project I

rev: 07_04_2019_QC_CS-172480, 09_03_2019_QC_CS-177768, 09_06_2019_QC_CS-178321