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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 (1) -$56,000 26,500

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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 (1) -$56,000 26,500 26,500 26,500 Cash Flow (11) -$30.800 15,000 15.000 15,000 a-1. If the required return is 11 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 Saved a-2. If the company applies the profitability index decision rule, which project should the firm accept? Project 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 Project 1 Project 1 b-2. If the company applies the NPV decision rule, which project should it take? Project 11 Project 1

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