You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 11 percent. UseAppendix Bfor an approximate answer but calculate your final answer using the formula and financial calculator methods.

Project X (Videotapes

of the Weather Report)

($22,000 Investment)Project Y (Slow-Motion

Replays of Commercials)

($42,000 Investment)YearCash FlowYearCash Flow1$11,0001$21,00029,000214,000310,000315,00049,600417,000

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 intermediate calculations and round your answer to 2 decimal places.)

c.Which project would you select?

Project XProject Y