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Cori's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow 1 2 3 -$49,000 24,400 24,400 24,400

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Cori's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow 1 2 3 -$49,000 24,400 24,400 24,400 Cash Flow (1) -$23,800 12,900 12,900 12,900 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 II a-2. If the company applies the profitability index decision rule, which project should the Saved nework a-2. If the company applies the profitability index decision rule, which project should the firm accept? O Project O Project 11 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 es Project 1 Project 11 b-2. If the company applies the NPV decision rule, which project should it take? O Project Il O Project !

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