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

Year	Cash Flow (I)	Cash Flow (II)
0	$83,000	$41,000
1	32,900	12,900
2	43,000	30,500
3	49,000	24,500

Requirement 1:
(a)	If the required return is 16 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).)

Project I :
Project II:

(b)	If the required return is 16 percent and the company applies the profitability index decision rule, which project should the firm accept?
	Project I or Project II

Requirement 2:
(a)	If the required return is 16 percent, what is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Project I :
Project II :

(b)	If the company applies the NPV decision rule, which project should it take?
	Project I or Project II