Problem 4 The Simpson Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (1) Cash Flow (1) 0 -$ 58,000 -$ 18,600 1 25,900 10,000 2 25,900 10,000 3 25,900 10,000 a-1. If the required return for both projects is 10 percent, what is the profitability index for both projects? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) a-2. If the company applies the profitability index decision rule, which project should the firm accept? b-1. What is the NPV for both projects? (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.) b-2. If the company applies the NPV decision rule, which project should it choose