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The Robb Computer Corporation is trying to choose between the following two mutually exclusive design projects: a - 1 . If the required return is
The Robb Computer Corporation is trying to choose between the following two mutually exclusive design projects:
a If the required return is percent, what is the PI for each project? Do not round intermediate calculations. Round the final
answers to decimal places.
a If the company applies the profitability index decision rule, which project should the firm accept?
Project I
Project II
b What is the NPV for each project? Negative answers should be indicated by a minus sign. Do not round intermediate
calculations. Round the final answers to decimal places. Omit $ sign in your response.
b If the company applies the NPV decision rule, which project should it take?
Project I
Project II
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