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Dahlia Manufacturing has the following two possible projects. The required return is 10 percent. Year Project Y Project Z 0 $27,400 $54,000 1 13,400 20,000
Dahlia Manufacturing has the following two possible projects. The required return is 10 percent. |
Year | Project Y | Project Z |
0 | $27,400 | $54,000 |
1 | 13,400 | 20,000 |
2 | 11,800 | 25,000 |
3 | 14,200 | 18,000 |
4 | 9,800 | 23,000 |
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? |
(Click to select)NeitherProject YProject Z |
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