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

projects:

a$-1.$ If the required return for both projects is $10$ percent, what is the profitability index for both

projects? $($Do not round intermediate calculations and round your answers to $3$ decimal

places, e$.$g$.,32\mathrm{.}161.)$

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$.,32\mathrm{.}16.)$

b$-2.$If the company applies the NPV decision rule, which project should it choose?