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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects TTY Cash Flow Cash Flow Year (1) -$65,000 30,000 30,000
The Sloan Corporation is trying to choose between the following two mutually exclusive design projects TTY Cash Flow Cash Flow Year (1) -$65,000 30,000 30,000 30,000 (I) -$17,900 9,650 9,650 9,650 0 1 2 3 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.) Project Project II a-2lf the company applies the profitability index decision rule, which project should the firm accept? Project I Project II 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 II b-2lf the company applies the NPV decision rule, which project should it take? Project I Project
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