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The Robb Computer Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) 0 $
The Robb Computer Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) 0 $ -59,000 $ -15,700 1 32,000 9,400 2 32,000 9,400 3 32,000 9,400 (a) If the required return is 18 percent, what is the profitability index for each project? (Round your answers to 3 decimal places. (e.g., 32.161)) Profitability Index Project I Project II (b) Calculate the NPV for each project assuming a required return of 18 percent. Round your answers to 2 decimal places. (e.g., 32.16)) NPV Project I $ Project II $
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