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Cori's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 1 2 3 Cash Flow 0 -$55,000 26,200

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Cori's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 1 2 3 Cash Flow 0 -$55,000 26,200 26,200 26,200 Cash Flow (II) -$29,800 14,700 14,700 14,700 a-1. If the required return is 10 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 1 Project 11 a-2. If the company applies the profitability index decision rule, which project should the - a-2. If the company applies the profitability index decision rule, which project should the firm accept? O Project 1 O Project 1 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.) NPV Project 1 Project 11 b.2. If the company applies the NPV decision rule, which project should it take? Project 1 O Project

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