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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 1 2 3 Cash Flow (0) -$63,000 28,900

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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 1 2 3 Cash Flow (0) -$63,000 28,900 28,900 28,900 Cash Flow (11) -$15,500 7,900 7,900 7,900 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.) Project 1 Project II a-2. If the company applies the profitability index decision rule, which project should the firm accept? Project 1 O Project 11 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.) Project 1 Project 11 b-2. If the company applies the NPV decision rule, which project should it take? Project O Project 11

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