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Cori's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Cash Flow Cash Flow (1) Year 0 1 2 3

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Cori's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Cash Flow Cash Flow (1) Year 0 1 2 3 -$55,000 26,200 26,200 26,200 -$29,800 14,700 14,700 14,700 2-1. 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 1 a-2. If the company applies the profitability index decision rule, which project should the 02 F6 F7 a-2. If the company applies the profitability index decision rule, which project should the firm accept? O Project 1 O 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.) NPV Project Project 1 b-2. If the company applies the NPV decision rule, which project should it take? O Project il Dunia! . FG FB FO F10 F2 7

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