There are two projects. Project Everest has an outflow of cash of $34,000 in years 0 and 1, followed by an inflow of $49,000 in each of the years 2 and 3. Project Seabed has a cash outflow of $60,000 in year 0, followed by an inflow of $29,000 in years 1, 2, and 3.

a) If the profitability index decision rule applies and the required return is 7.5%, which project should be selected?

b) If the NPV decision rule applies then which project should be selected?

Answer Place your final answer in the box.

Question	Your Response
Profitability Index - Which Project?
NPV Which Project?