The Angry Bird Corporation is trying to choose between the following two mutually exclusive design projects:

Year	Cash Flow (I)				Cash Flow (II)
0	$	64,000			$	18,000
1		31,000				9,700
2		31,000				9,700
3		31,000				9,700

a-1	If the required return is 10 percent, what is the profitability index for both projects? (Round your answers to 3 decimal places. (e.g., 32.161))

	Profitability Index
Project I
Project II

a-2

If the company applies the profitability index decision rule, which project should the firm accept?

	Project I
	Project II

b-1	What is the NPV for both projects? (Round your answers to 2 decimal places. (e.g., 32.16))

	NPV
Project I	$
Project II	$

b-2

If the company applies the NPV decision rule, which project should it take?

	Project I
	Project II