What is the profitability index for each project

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Dahlia Manufacturing has the following two possible projects. The required return is 11 percent.

Year Project Y     Project Z

0    –$28,000    –$60,000

1       14,000    17,000

2       12,400        31,000

3       14,800        15,000

4       10,400 29,000

Required: (a) What is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).)  

              Profitability index

Project Y ________

Project Z ________

(b) What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

                    NPV

Project Y $________

Project Z $ ________

(c) Which, if either, of the projects should the company accept? __________

Reference no: EM131598098

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