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The Whenworth Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow () Cash Flow (II) -$84,000 30,600 36,900
The Whenworth Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow () Cash Flow (II) -$84,000 30,600 36,900 43,700 -$29,800 10,500 17,400 15,600 1 2 a-1. If the required return is 11 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 required return is 11 percent and the company applies the profitability index decision rule, which project should the firm accept? b-1. If the required return is 11 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.lf the company applies the NPV decision rule, which project should it take? a-1. Project l Project I a-2. Project acceptance b-1. Project l Project II b-2. Project acceptance
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