a- If the company applies the profitability index decision rule, which project should the 2. firm accept? Project I ○ Project II b- What is the NPV for both projects? (A negative answer should be indicated by a 1. minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project I Project II b- If the company applies the NPV decision rule, which project should it take? 2. Project I Project II The Michner Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (1) Cash Flow (II) -$ -$ 0 62,000 18,200 123 33,000 9,800 2 33,000 9,800 3 33,000 9,800 a-1.If the required return is 12 percent, what is the profitability index for both projects? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project I Project II a- If the company applies the profitability index decision rule, which project should the 2. firm accept? Project I ○ Project II
a- If the company applies the profitability index decision rule, which project should the 2. firm accept? Project I ○ Project II b- What is the NPV for both projects? (A negative answer should be indicated by a 1. minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project I Project II b- If the company applies the NPV decision rule, which project should it take? 2. Project I Project II The Michner Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (1) Cash Flow (II) -$ -$ 0 62,000 18,200 123 33,000 9,800 2 33,000 9,800 3 33,000 9,800 a-1.If the required return is 12 percent, what is the profitability index for both projects? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project I Project II a- If the company applies the profitability index decision rule, which project should the 2. firm accept? Project I ○ Project II
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:a- If the company applies the profitability index decision rule, which project should the
2. firm accept?
Project I
○ Project II
b- What is the NPV for both projects? (A negative answer should be indicated by a
1. minus sign. Do not round intermediate calculations and round your answers to 2
decimal places, e.g., 32.16.)
Project I
Project II
b-
If the company applies the NPV decision rule, which project should it take?
2.
Project I
Project II
Transcribed Image Text:The Michner Corporation is trying to choose between the following two mutually
exclusive design projects:
Year Cash Flow (1) Cash Flow (II)
-$
-$
0
62,000
18,200
123
33,000
9,800
2
33,000
9,800
3
33,000
9,800
a-1.If the required return is 12 percent, what is the profitability index for both projects?
(Do not round intermediate calculations and round your answers to 3 decimal
places, e.g., 32.161.)
Project I
Project II
a- If the company applies the profitability index decision rule, which project should the
2. firm accept?
Project I
○ Project II
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