The Whenworth Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) -$84,000 33,900 44,000 50,000 -$42,000 12,600 31,500...


The Whenworth Corporation is trying to choose between the following two mutually<br>exclusive design projects:<br>Year<br>Cash Flow (I) Cash Flow (II)<br>-$84,000<br>33,900<br>44,000<br>50,000<br>-$42,000<br>12,600<br>31,500<br>25,500<br>1<br>a-1. If the required return is 17 percent, what is the profitability index for each project?<br>(Do not round intermediate calculations and round your answers to 3 decimal<br>places, e.g., 32.161.)<br>a-2. If the company applies the profitability index decision rule, which project should it<br>take?<br>b-1. If the required return is 17 percent, what is the NPV for each project? (Do not round<br>intermediate calculations and round your answers to 2 decimal places, e.g.,<br>32.16.)<br>b-2. If the company applies the net present value decision rule, which project should it<br>take?<br>a-1. Project I<br>Project II<br>а-2.<br>b-1. Project I<br>Project II<br>

Extracted text: The Whenworth Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) -$84,000 33,900 44,000 50,000 -$42,000 12,600 31,500 25,500 1 a-1. If the required return is 17 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 17 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 I Project II а-2. b-1. Project I Project II

Jun 06, 2022
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