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The Matterhorn Corporation is trying to choose between the following two mutually exclusive design projects: a . If the required return is 1 4 percent,

The Matterhorn Corporation is trying to choose between the following two mutually exclusive design projects:
a. If the required return is 14 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.)
If the required return is 14 percent and the company applies the profitability index decision rule, which project should the firm accept?
b. If the required return is 14 percent, what is the NPV for each project? (Do not round intermediate calculations and round your
answers to 2 decimal places, e.g.,32.16.)
If the company applies the NPV decision rule, which project should it take?
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