You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 10 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) ($14,000 Investment		Project Y (Slow-Motion Replays of Commercials) ($34,000 Investment)
Year	Cash Flow	Year	Cash Flow
1	$7,000	1	$17,000
2	$5,000	2	$10,000
3	$6,000	3	$11,000
4	$5,600	4	$13,000

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. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Profitability Index -

c. Which project would you select based on the profitability index?

Project X

Project Y