Please help with this accounting question. Please fill out every cell and be cor

Question

Please help with this accounting question. Please fill out every cell and be correct, I only have a limited amount of questions to be posting on Chegg and I don't want to keep complaining about incorrect answers... So only answer if you are correct. I will comment if you are wrong. I will rate 'thumbs up' if you're correct.

Link: http://i.imgur.com/IeAxVad.png

Also would be grateful if anyone could tell me the correct answer to the one I have wrong here: http://i.imgur.com/r1KFKBz.png

Thank you.

Explanation / Answer

requirement 1

(a) project profitability Index

I present value of cash inflow / outflow $90879.5/$81000 =1.122

II   present value of cash inflow / outflow $48943.5 / $39000 = 1.255

Note:- present value of cash inflow and outflow

Project I

Year cash flow PVF(14%,n year ) Present value

0 81000 1 81000

1 31500 0.877 27625.5

2 41000 0.769 31529

3 47000 0.675 31725

present value of cash outflow = 81000

present value of cash inflow =90879.5

Project II

Year cash flow PVF(14%,n year ) Present value

0 39000 1 39000

1 13500 0.877 11839.5

2 28500 0.769 21916.5

3 22500 0.675 15187.5

present value of cash outflow = 39000

present value of cash inflow =48943.5

(b) project II , because its profitability index is greater than 1 and project I

Requirement 2

(a)   project NPV

I present value of cash inflow- present value of cash outflow $90879.5 - $81000 = $9879.5

II    present value of cash inflow- present value of cash outflow $48943.5 - $39000 = $9943.5

(b) Project II , because its NPV is greater than Project I

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