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Need help with a-1, a-2, b-1, and b-2 The Bosa Corporation is trying to choose between the following two mutually exclusive design projects: Year 1
Need help with a-1, a-2, b-1, and b-2
The Bosa Corporation is trying to choose between the following two mutually exclusive design projects: Year 1 2 3 Cash Flow (1) -$78,eee 31,500 31,500 31,500 Cash Flow (II) -$17,480 9,400 9,480 9,400 a-1 If the required return for both projects is 11 percent what is the profitability Index for both projects? (Do not round Intermediate calculations and round your answers to 3 decimal places, e.g.. 32161.) Profitability Index Project I Project II a-2 If the company applies the profitability Index decision rule, which project should the firm accept? O Project 1 O Project 11 b-1 What is the NPV for both projects? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign. Round your answers to 2 decimal places, e.... 32.16.) NPV $ Project 1 Project II b-2 if the company applies the NPV decision rule, which project should it choose? O Project 1 O Project IlStep by Step Solution
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