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) ($44,000 Investment) Project Y (Slow-Motion Replays of Commercials) ($64,000 Investment) Year Cash Flow Year Cash Flow 1 $ 22,000 1 $ 32,000 2 20,000 2 25,000 3 21,000 3 26,000 4 20,600 4 28,000 a. Calculate the profitability index for project X. (Do not round intermediate calculations and round your answer to 2 decimal places.)

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 financlal calculator methods. a. Calculate the profitability Index for project X. (Do not round intermediate calculations and round your answer to 2 decimal places.) b. Calculate the profitability index for project Y. (Do not round intermedlate calculations and round your answer to 2 decimal places.) c. Which project would you select based on the profitability Index? Project X Project Y