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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Cash Flow Year 0 1 2 3 Cash Flow (0)

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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Cash Flow Year 0 1 2 3 Cash Flow (0) -$55,000 25,000 25,000 25,000 -$18,900 10,150 10,150 10,150 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.) Project Project II a-21f the company applies the profitability index decision rule, which project should the firm accept? O Project! Proiect II a-2 If the company applies the profitability index decision rule, which project should the firm accept? O Project O 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.) Project 1 Project 11 b-21f the company applies the NPV decision rule, which project should it take? O Project O Project Il

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