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The Whenworth Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow () Cash Flow (1) 0 -$90,000 -$58,000

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The Whenworth Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow () Cash Flow (1) 0 -$90,000 -$58,000 39,900 11,800 50,000 37,500 3 30,000 31,500 1 2 a-1. If the required return is 13 percent, what is the profitability Index for each project? (Do not round Intermediate calculations and round your answers to 3 decimal places, 0.9., 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 13 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? 1-1 Project Project 1 b-1. Project Droit Move

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