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

Year	Cash Flow (I)				Cash Flow (II)
0	$	56,000			$	18,800
1		26,000				10,100
2		26,000				10,100
3		26,000				10,100

a-1.	If the required return for both projects is 12 percent, what is the profitability index for both projects? (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 the firm accept?
b-1.	What is the NPV for both projects? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b-2.	If the company applies the NPV decision rule, which project should it choose?