Question: An interior design studio is trying to choose between the following two mutually exclusive design projects: Cash Flow Cash Flow ca (0) (W) -$64,000 $18.000

An interior design studio is trying to choose between the following two mutually exclusive design projects: Cash Flow Cash Flow ca (0) (W) -$64,000 $18.000 31,000 9.700 31,0009,700 31,000 9,700 WNO a-1 If the required return is 10 percent, what is the profitability index for both projects? (Round your answers to 3 decimal places. (e.g., 32.161)) Profitability Index Project Project II a-2 If the company applies the profitability index decision rule, which project should the firm accept? Project 1 Project II b-1 What is the NPV for both projects? (Round your answers to 2 decimal places. (e.g.. 32.16)) NPV Project Project II b-21f the company applies the NPV decision rule, which project should it take? Project Project

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