You are analyzing two proposed capital investments with the following cash flows:

Year Project X Project Y

$0-$ $$20,000-$ $$20,000$

$112,6306,770$

$25,7606,770$

$35,7606,770$

$42,1206,770$

The cost of capital for both projects is $10$ percent.

Calculate the profitability index $($PI$)$ for each project