Problem 8-17 NPV and Profitability Index [LO 4, 6]

Dahlia Manufacturing has the following two possible projects. The required return is 14 percent.

Year	Project Y	Project Z
0	$28,700	$52,000
1	14,700	13,500
2	13,100	38,000
3	15,500	11,500
4	11,100	36,000

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)Project YProject ZNeither