The Michner Corporation is trying to choose between the following two

mutually exclusive design projects:

$a-1.$ If the required return is $11$ 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$.,32\mathrm{.}161.$

a$-2.$ If the company applies the profitability index decision rule, which project

should it take?

b$-1.$ If the required return is $11$ percent, what is the NPV for each project?

Note: Do not round intermediate calculations and round your answers to

$2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$-2.$ If the company applies the net present value decision rule, which

project should it take?The Michner Corporation is trying to choose between the following two mutually exclusive design projects:

Year Cash Flow $($I$)$ Cash Flow $($II$)$

$0$$ $88,000$$ $56,000$

$137,90011,400$

$248,00035,500$

$328,00029,500$

a$-1.$ If the required return is $11$ 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$.,32\mathrm{.}161.$

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

b$-1.$ If the required return is $11$ percent, what is the NPV for each project?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

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