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0.6points eBook Print References Check my workCheck My Work button is now enabled Item 5 Item 5 0.6 points Coore Manufacturing has the following two
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Item 5
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Coore Manufacturing has the following two possible projects. The required return is 12 percent. |
Year | Project Y | Project Z |
0 | $47,600 | $81,000 |
1 | 23,900 | 34,000 |
2 | 18,600 | 32,800 |
3 | 20,700 | 30,500 |
4 | 14,600 | 27,300 |
a. | What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) |
b. | What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
c. | Which, if either, of the projects should the company accept? |
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