Question
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 $
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