Problem 9-16 Problems with Profitability Index [L01, 7) The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow Team 0 $68,000 1 31,000 31,000 31,000 Cash Flow (11) $17,600 9,500 9,500 9,500 a-1 If the required return is 12 percent, what is the profitability index for both projects? (Do not round Intermediate calculations. Round your answers to 3 decimal places, e.g., 32.161.) Project 1 Project 11 a-2 If the company applies the profitability index decision rule, which project should the firm accept? Project Project II Project II a-2 If the company applies the profitability Index decision rule, which project should the firm accept? O Project 1 O Project II b-1 What is the NPV for both projects? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) T Project I Project II b-2if the company applies the NPV decision rule, which project should it take? Project 1 Project