Problem 5-12 Problems with Profitability Index Symon's Sausage Corporation is trying to choose between the following...

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Problem 5-12 Problems with Profitability Index Symon's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow Cash Flow (1) (UI) -$ -$ 0 60,000 34,800 1 27,700 16.200 23 27,700 16.200 27,700 16,200 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., 32.161.) Project I Project II Profitability Index 13 a-2. If the company applies the profitability index decision rule, which project should the firm accept? Project! 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., 32.16.) Problem 5-12 Problems with Profitability Index Symon's Sausage Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow Cash Flow (1) (UI) -$ -$ 0 60,000 34,800 1 27,700 16.200 23 27,700 16.200 27,700 16,200 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., 32.161.) Project I Project II Profitability Index 13 a-2. If the company applies the profitability index decision rule, which project should the firm accept? Project! 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., 32.16.)