The Michner Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) 0 $ 87,000 $ 55,000 1 36,900 11,700 2 47,000 34,500 3 27,000 28,500

a-1. If the required return is 10 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 10 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?