Question
Dahlia Manufacturing has the following two possible projects. The required return is 11 percent. Year Project Y Project Z 0 $28,800 $53,000 1 14,800 13,000
Dahlia Manufacturing has the following two possible projects. The required return is 11 percent. Year Project Y Project Z 0 $28,800 $53,000 1 14,800 13,000 2 13,200 39,000 3 15,600 11,000 4 11,200 37,000 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?
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