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The Michner Corporation is trying to choose between the following two mutually exclusive design projects: Year: 0 , 1 , 2 , 3 . Cash
The Michner Corporation is trying to choose between the following two mutually exclusive design projects: Year: Cash Flow I$ Cash Flow II$ A: If the required return is percent, what is the profitability index for each project? Note: Do not round intermediate calculations and round your answer to decimal places, eg A: If the company applies the profitability index decision rule, which project should it take? B: If the required return is percent, what is the NPV for each project? Note: Do not round intermediate calculations and round your answers to decimal places, eg B: If the company applies the net present value decision rule, which project should it take?
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