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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II)
0 –$ 56,000 –$ 18,800
1 26,000 10,100
2 26,000 10,100
3 26,000 10,100
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.)
Profitability Index
Project I :
Project II:
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