Question
Coore Manufacturing has the following two possible projects. The required return is 13 percent. Year Project Y Project Z 0 -$28,600 -$51,000 1 14,600
Coore Manufacturing has the following two possible projects. The required return is 13 percent. Year Project Y Project Z 0 -$28,600 -$51,000 1 14,600 14,000 2 13,000 37,000 3 15,400 12,000 4 11,000 35,000 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? a. Project Y Project Z b. Project Y Project Z c. Accept project
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Essentials of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
9th edition
978-1259277214
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