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The Michner Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow ( I ) Cash Flow ( II

The Michner Corporation is trying to choose between the following two mutually exclusive design projects:
Year Cash Flow (I) Cash Flow (II)
0$ 89,000$ 57,000
138,90011,100
249,00036,500
329,00030,500
a-1. If the required return is 12 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 12 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?

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