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The Whenworth Corporation is trying to choose between the following two mutually exclusive design projects: comm Year Cash Flow (0) Cash Flow (II) -$86,000 -$53,000

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The Whenworth Corporation is trying to choose between the following two mutually exclusive design projects: comm Year Cash Flow (0) Cash Flow (II) -$86,000 -$53,000 1 35,900 12,000 2 46,000 33,500 3 26,000 24,500 a-1. If the required return 10 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 10 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. b-1. Project 1 Project II b-2

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