The Simpson Corporation is trying to choose between the following two mutually exclusive design projects:...
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The Simpson Corporation is trying to choose between the following two mutually exclusive design projects: a-1. If the required return for both projects is 11 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.) a- If the company applies the profitability index decision rule, which project should the 2. firm accept? 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.) b- If the company applies the NPV decision rule, which project should it choose? 2
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