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23 Nov 2019
ou are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 12 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)
($26,000 Investment)
Project Y (Slow-Motion
Replays of Commercials)
($46,000 Investment)
Year Cash Flow Year Cash Flow 1 $ 13,000 1 $ 23,000 2 11,000 2 16,000 3 12,000 3 17,000 4 11,600 4 19,000
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
ou are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 12 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) ($26,000 Investment) | Project Y (Slow-Motion Replays of Commercials) ($46,000 Investment) | |||||||||
Year | Cash Flow | Year | Cash Flow | |||||||
1 | $ | 13,000 | 1 | $ | 23,000 | |||||
2 | 11,000 | 2 | 16,000 | |||||||
3 | 12,000 | 3 | 17,000 | |||||||
4 | 11,600 | 4 | 19,000 | |||||||
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 | |
20 Dec 2021
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Reid WolffLv2
13 Apr 2019
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