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

Year

Cash Flow (I)

Cash Flow (II)

0

$

65,000

$

17,900

1

30,000

9,650

2

30,000

9,650

3

30,000

9,650

a-1

If 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.)

a-2

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

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?