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

Year	Cash Flow 1	Cash Flow 2
0	- $78,000	- $36,000
1	30,000	12,000
2	38,000	25,500
3	44,000	19,500

Requirement 1: (a) If the required return is 13 percent, what is the profitability index for each project?

Requirement 2: (a) If the require return is 13 percent, what is the NPV for each project?