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

Year	Cash Flow (I)				Cash Flow (II)
0	$	58,000			$	18,600
1		25,900				10,000
2		25,900				10,000
3		25,900				10,000

a-1	If the required return is 10 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.)

a-2	If the company applies the profitability index decision rule, which project should the firm accept?
	multiple choice 1 Project I Project Il

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 take?
	multiple choice 2 Project I Project II