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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 1 Cash Flow Cash Flow (0) (U) -$

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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 1 Cash Flow Cash Flow (0) (U) -$ 57,000 $18,700 25,800 10,050 25,800 10,050 25,800 10,050 WN a-1 If the required return is 11 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.) Project 1 Project 11 a-2 If the company applies the profitability index decision rule, which project should the firm accept? Project 1 Project 1 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 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 10 b-21f the company applies the NPV decision rule, which project should it take? Project 1 Project 11

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