Problem 9-16 Problems with Profitability Index [LO1, 7] The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Year 0 1 Cash Flow (0) -$65,000 30,000 30,000 30,000 Cash Flow (11) -$17,900 9,650 9,650 9,650 3 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 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.) Project 1 Project 11 b-21f the company applies the NPV decision rule, which project should it take? O Project 1 O Project 10