What is the profitability index for both projects

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Reference no: EM131507990

The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) 0 –$ 57,000 –$ 18,700 1 25,800 10,050 2 25,800 10,050 3 25,800 10,050 a-1 If the required return is 11 percent, what is the profitability index for both projects? (Do not round intermediate calculations. Round your answers to 3 decimal places, e.g., 32.161.) Profitability Index Project I Project II a-2 If the company applies the profitability index decision rule, which project should the firm accept? Project I Project Il b-1 What is the NPV for both projects? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) NPV Project I $ Project II $ b-2 If the company applies the NPV decision rule, which project should it take?

Reference no: EM131507990

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