Question
The Weiland Computer Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) 0 $38,000
The Weiland Computer Corporation is trying to choose between the following two mutually exclusive design projects: |
Year | Cash Flow (I) | Cash Flow (II) |
0 | $38,000 | $8,100 |
1 | 17,000 | 2,600 |
2 | 17,000 | 2,600 |
3 | 17,000 | 2,600 |
The required return is 8 percent. |
(a) | The profitability index for Projects I and II is_____ and____, respectively. (Round your answers to 3 decimal places. (e.g., 32.161)). If Weiland On Computer applies the NPV decision rule, it should accept Project (Click to select)(I/II) |
(b) | The NPV for Projects I and II is $_____ and $____, respectively. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16)). If Weiland On Computer applies the NPV decision rule, it should accept Project (Click to select)(I/II) |
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