Problem $5-12$ Problems with Profitability Index

Symon's Sausage Corporation is trying to choose between the following two mutually

exclusive design projects:

a$-1.$ If the required return is $12$ percent, what is the profitability index for each project?

$($Do not round intermediate calculations and round your answers to $3$ decimal

places, e$.$g$.,32\mathrm{.}161.)$

a$-2.$ If the company applies the profitability index decision rule, which project should the

firm accept?

Project I

Project II

b$-1.$ What is the NPV for each project? $($Do not round intermediate calculations and

round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$-2.$ If the company applies the NPV decision rule, which project should it take?

Project II

Project I