The Robb Computer Corporation is trying to choose between the following two mutually exclusive design projects:

Year	Cash Flow (I)				Cash Flow (II)
0	$	74,000			$	17,000
1		21,900				9,200
2		21,900				9,200
3		21,950				9,200

a-1.	If the required return is 12 percent, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))

	Profitability Index
Project I
Project II

a-2.

If the company applies the profitability index decision rule, which project should the firm accept?

	Project I
	Project II

b-1.	What is the NPV for each project? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

	NPV
Project I	$
Project II	$

b-2.

If the company applies the NPV decision rule, which project should it take?

	Project II
	Project I