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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Cash Flow Cash Flow Year -$59,000 - 18,500 9,950 9,950
The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Cash Flow Cash Flow Year -$59,000 - 18,500 9,950 9,950 9,950 26,900 26,900 26,900 2 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.) Profitability Index Project I Project II a-2 If the company applies the profitability index decision rule, which project should the firm accept? Project I O Project Il b-1 What is the NPV for both projects? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) NPV Project I Project Il b-2 If the company applies the NPV decision rule, which project should it take? O Project I O Project
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