Che 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 Project Y Slow-Motion of the Weather Report) Replays of Commercials) (546,000 Investment) ($80,000 Investment) Year Cash Flow Year Cash Flow 1 $30,000 1 $40,000 2 28,000 2 33,000 3 20,000 34.000 18,600 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.) Appendia Present stwo of St. PVC let your Perted 1 2 3 TL 0.900 O 0.971 0.943 0915 SC60 ELBO 1260 21 0.980 0.961 0942 0.024 0.006 0. 0371 0.53 0317 an 0926 0357 0.794 0735 0.61 0630 TTK 0.901 0.812 0.721 0.650 0592 0.893 0.797 0.712 0.66 0.061 3880 1560 OR 0837 0.952 0.907 0.064 0.1122 0.784 0.746 0.711 0677 0.45 0614 10% 0.900 0.826 0.751 063 0.621 0564 0513 0467 0424 0386 900 0.017 0.542 0.772 0.700 OO 0506 0547 0.502 0.450 0.422 SESO 45 0.962 0.925 ORO 0.855 0.822 0.700 0760 0.731 0703 0676 0660 0625 0601 0577 0554 EITO OS ERTO 0507 0.452 0.404 8 9 SO IND OBO VONIO 0540 O100 0.463 0429 O. 0.32 SOSO 0.482 0414 0791 0.352 0312 0.256 0250 Peret 0% 0.943 0.0190 0.840 0816 0.792 0.763 0.747 0.713 0.706 O.GGG 0.6.23 0627 0502 0544 050 0.500 0527 0475 0.497 0.444 0.450 0442 0417 0.162 020 031 6.200 0331 0277 0312 0250 0233 0.184 0174 0131 0.067 0054 0034 SEO OSCO 0942 0923 0.923 0914 0.005 0006 OBRT 0070 0870 ONI 03 0844 06 0.28 0.100 O957 CHCO SCO 0.70 07646 0744 0722 0701 O 0.61 0642 0623 0605 057 0570 INO OSO SONO 10 10 12 13 14 15 16 12 18 10 20 25 30 40 SIVO LEO 0256 0226 0.290 0775 022 0340 0316 0.22 0270 0229 0200 0.133 0163 0146 VVD w POCO LIED 0.78 0.773 OM 0743 0.720 0714 0.700 OG 0673 0610 0552 0.463 032 ICCO 0481 04 0436 0.416 0.00 0377 0295 0319 0.200 020 020 0218 0190 010 0.164 0.140 0092 DOSY 0022 DICO 0513 0494 0.475 0.44 0.175 OM 0.10 0.312 0194 0.170 0.116 0212 0215 0.146 0.200 0.1 0170 13 0.130 0.124 0074 0.044 2015 0.005 116 0104 VO ORO 0.478 1300 0412 BOCO 0000 0142 0672 OGO 0302 0220 0.142 2600 WOO CEO 0200 0101 0046 0001 05 009 0011 0.003 2800 0013 6000 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 based on the profitability index? O Project X O Project Y