You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 13 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Project X (Videotapes of the Weather Report) ($28,000 Investment)						Project Y (Slow-Motion Replays of Commercials) ($48,000 Investment)
Year		Cash Flow				Year		Cash Flow
1		$	14,000			1		$	24,000
2			12,000			2			17,000
3			13,000			3			18,000
4			12,600			4			20,000

a. Calculate the profitability index for project X. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Profitability index _____

B. Calculate the profitability index for project Y.

Profitability index _____