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The Whenworth Corporation is trying to choose between the following two mutually exclusive design projects: Year O WN-O Cash Flow (1) Cash Flow (II) $77,000
The Whenworth Corporation is trying to choose between the following two mutually exclusive design projects: Year O WN-O Cash Flow (1) Cash Flow (II) $77,000 $35,000 29,500 11,500 37,000 24,500 43,000 18,500 a-1. If the required return is 12 percent, what is the profitability index for each project? (Do not round intermediate calculations and 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 it take? b-1. If the required return is 12 percent, what is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2. If the company applies the net present value decision rule, which project should it take? a-1. Project 1 Project II a-2. Project II b-1. Project Project
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