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The Angry Bird Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 Cash Flow (1) Cash Flow (II) -$
The Angry Bird Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 Cash Flow (1) Cash Flow (II) -$ 58,000 -$ 18,600 25,900 10,000 25.900 10.000 25,900 10,000 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 Project II a-2 If the company applies the profitability index decision rule, which project should the firm accept? O Project Project II b-1 What is the NPV for both projects? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) NPV Project 1 Project II b-2 If the company applies the NPV decision rule, which project should it take? Project Project 11 O
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