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

YearCash Flow

(I)Cash Flow

(II)0-$74,000-$17,000134,0009,200234,0009,200334,0009,200

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

Profitability

IndexProject IProject II

a-2If the company applies the profitability index decision rule, which project should the firm accept?

Project IProject Il

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

NPVProject I$Project II$

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

Project IProject II