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The Matterhorn Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) 0 $ -79,000

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

Year Cash Flow (I) Cash Flow (II)
0 $ -79,000 $ -37,000
1 30,500 12,500
2 39,000 26,500
3 45,000 20,500

a. If the required return is 13 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
Project I ___________
Project II

__________

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