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

years	cashflow (1)	cashflow (ll)
0	-$86,000	-$53,000
1	35,900	12,000
2	46,000	33,500
3	26,000	27,500

Requirement 1:

(a)

If the required return is 10 percent, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).)

	profability index
Project l	??
project ll	??

B. If the required return is 10 percent and the company applies the profitability index decision rule, which project should the firm accept?

project l or project ll?

C, )

If the required return is 10 percent, what is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	Not Present value
project l	$????
project ll	$???

(b)	If the company applies the NPV decision rule, which project should it take? project l or project ll?