4 of 10 Current Attempt in Progress -/1 E Marigold Company is considering two new projects, each requiring an equipment investment of $98,600. Each project will last for three years and produce the following cash flows: Year Cool Hot 1 $38,800 $42,800 2 43,800 42,800 3 48,800 42,800 131,400 $128,400 The equipment will have no salvage value at the end of its three-year life. Marigold Company uses straight-line depreciation and requires a minimum rate of return of 12%. Present value data are as follows: Question 4 of 10 Present value data are as follows: Present Value of 1 -/1 Period 12% 1 0.89286 2 0.79719 3 0.71178 Present Value of an Annuity of 1 Period 12% 1 2 0.89286 1.69005 III ... Question 4 of 10 < > 0.33/1 (a) Your answer is correct. Compute the net present value of each project. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answers to O decimal places, e.g. 5,275.) Project Cool Net present value 5687 i SA $ eTextbook and Media Project Hot 4203 Attempts: 2 of 5 used Question 4 of 10 < > (b) 0.33/1 Compute the profitability index of each project. (Round answers to 2 decimal places, e.g. 15.25.) Profitability index eTextbook and Media Save for Later Project Cool Project Hot Attempts: 0 of 5 used Submit