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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Cash Flow Year (I) Cash Flow Cash Flow (II) 0

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

Cash Flow Year (I) Cash Flow Cash Flow (II) 0 $70,000 -17,400

1 31,500 9400

2 31,500 9400

3 31,500 9400

a.If the required return is 11 percent, what is the profitability index for both projects? Project A and B

b.What is the NPV for both projects?

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