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

Year	Cash Flow (I)	Cash Flow (II)
0	$ 80,000	$ 38,000
1	31,000	13,000
2	40,000	27,500
3	46,000	19,500

a-1. If the required return is 14 percent, what is the profitability index for each project?

Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.

a-2. If the company applies the profitability index decision rule, which project should it take?

b-1. If the required return is 14 percent, what is the NPV for each project?

Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

b-2. If the company applies the net present value decision rule, which project should it take?