The Michner Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (1) Cash Flow (II) -$ O -$ 68,000 31,000 31,000 31,000 123 2 3 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 17,600 9,500 9,500 9,500 a- If the company applies the profitability index decision rule, which project should the 2. firm accept? O Project I Project II Project I Project II 1.278 1.293 1. b- 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.) $ $ 17,260.43 5,337.95

The Michner Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (1) Cash Flow (II) -$ O -$ 68,000 31,000 31,000 31,000 123 2 3 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 17,600 9,500 9,500 9,500 a- If the company applies the profitability index decision rule, which project should the 2. firm accept? O Project I Project II Project I Project II 1.278 1.293 1. b- 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.) $ $ 17,260.43 5,337.95

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Description: Hello, Could you help me double check my work. I attached the image. The Michner Corporation is trying to choose between the following two mutuallyexclusive design projects:Year Cash Flow (1) Cash Flow (II)-$-$0123Project IProject II68,00031,00031,00

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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