Business, 28.10.2019 23:31 ayoismeisalex

You are asked to evaluate the following two projects for the norton corporation. use a discount rate of 10 percent. use appendix b for an approximate answer but calculate your final answer using the formula and financial calculator methods.

project x (videotapes
of the weather report)
($46,000 investment)
project y (slow-motion
replays of commercials)
($80,000 investment)
year cash flow year cash flow
1 $ 30,000 1 $ 40,000
2 28,000 2 33,000
3 20,000 3 34,000
4 18,600 4 36,000

a.
calculate the profitability index for project x. (do not round intermediate calculations and round your answer to 2 decimal places.)

profitability index

b.
calculate the profitability index for project y. (do not round intermediate calculations and round your answer to 2 decimal places.)

profitability index

c.
which project would you select?

project x
project y
hints

references

ebook & resources

Answers: 1

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You are asked to evaluate the following two projects for the norton corporation. use a discount rate...