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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (1) Cash Flow (11) 0 -$63,000 -$15,500

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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (1) Cash Flow (11) 0 -$63,000 -$15,500 1 28,900 7,900 2 28,900 7,900 3 28,900 7,900 NM a-1. If the required return 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. 32.161.) 3 nces Project Project 1 8,870.020 4,146.130 a-2. If the company applies the profitability index decision rule, which project should the firm accept? Project 1 Project 11 MC eBook 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.) References Project Project $ $ 1.14 1.27 b-2. If the company applies the NPV decision rule, which project should it take? Project 1 O Project ME Gew

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