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Symon's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Cash Flow Cash Flow Year (1) -$ (11) -$
Symon's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Cash Flow Cash Flow Year (1) -$ (11) -$ 0 64,000 38,800 123 28,900 17,600 2 28,900 17,600 28,900 17,600 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 S Project I Project II a-2. If the company applies the profitability index decision rule, which project should the firm accept? Project I O Project II b-1. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project I Project II NPV b-2. If the company applies the NPV decision rule, which project should it take? Project II O Project I
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