Problem 8-14 Problems with Profitability Index [LO 6) The Matterhom Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (1) Cash Flow (1) 0 $79,000 -$37,000 1 30,500 12,500 39,000 26,500 45,000 20,500 Requirement 1: (a) If the required return is 13 percent, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).) Profitability index Project 1 Project II (b) if the required return is 13 percent and the company applies the profitability index decision rule, which project should the firm accept? Click to select) Requirement 2: (a) If the required return is 13 percent, what is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Net present value Project! Project II (byif the company applies the NPV decision rule, which project should it take? Click to select)