Problems with Profitability Index.
The Moby Computer Corporation is trying to choose between the following mutually exclusive design projects using a required return of 9%:Year
Cashflow (I)
Cashflow (II)
0
-1000000
-10000
1
410000
6800
2
410000
6800
3
410000
6800
The PI for Project I is_____.
The PI for Project II is______.
The NPV for Project I is $_______.
The NPV for Project II is $_______.
Using the PI decision rule, I would chose project___.
Using the NPV decision rule, I would chose project____.





