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The below chart shows the cashflows of two possible projects (Project Y and Project Z). The required return is 12%. Therefore, what are the respective

The below chart shows the cashflows of two possible projects (Project Y and Project Z). The required return is 12%.

Therefore, what are the respective profitability indices, NPVs for each project? Also, which project shall the company accept?

begin{tabular}{|l|l|l|} hline Year & Project ( Y ) & Project Z  hline 0 & ( -55,600 ) & ( -89,000 )  hline 1 & 

Year 0 1 2 3 4 Project Y Project Z -55,600 -89,000 26,900 36,000 19,600 24,800 22,700 32,500 16,600 29,300

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