Problem 8: Calculating Profitability Index. Use the following set of cash flows to calculate the Profitability Index at different required rates of return: Year 0 1 2 3 Cash flow -6,5001 4,000 2,000 1,500 8a. The Plis 8a. Points: 3.33 8b. The Plis 8b. Points: 3.33 8c. The Plis 8c. Points: 10 Lif the required rate of return is 10%. Lif the required rate of return is 15%. if the required rate of return is 22%. Problem 9: Problems with Profitability Index. The Moby Computer Corporation is trying to choose between the following mutually exclusive design projects using a required return of 9%: Year 0 1 2 3 Cashflow (1) -1,000,000 410,000 410,000 410,000 Cashflow (2) -10,000 6,800 6,800 6,800 9a. The Pl for Project 1 is 9a. Poir 2 9b. The PI for Project 2 is 9b. Points: 2 9c. The NPV for Project 1 is $. 9c. Points: 2 9d. The NPV for Project 2 is $_ 9d. Points: 2 9e. Using the PI decision rule, I would chose project 9e. Points: 1 9f. Using the NPV decision rule, I would chose project 9f. Points: 1 Problem 10: Comparing Investment Criteria. Consider the following two mutually exclusive design projects using a required return of 18%: Year Cash flow (A) Cash flow (B) 0 -22,000 -2,200 500 1,100 4,000 900 3 10,000 1,100 4 42,000 4,000 1 10a. The NPV for Project A is $ 10a. Points: 1.5 10b. The NPV for Project B is $ 10b. Points: 1.5 10c. The IRR for Project A is %. 10c. Points: 1.5 10d. The IRR for Project B is %. 10d. Points: 1.5 10e. The PI for Project A is 10e. Points: 1.5 10f. The PI for Project B is 10f. Points: 1.5 10g. To maximize shareholder's wealth, I would chose project 10g. Points: 1