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) ($32,000 Investment) Year Cash Flow 1 $16,000 2 14,000 3 15,000 4 14,600 Project Y (Slow-Motion Replays of Commercials) ($52,000 Investment) Year Cash Flow 1 $ 26,000 2 19,000 3 20,000 22,000 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 TOI NUDIS JUIllall Ure Dessert Free Piano Sheet... Word Appendix B Present value of $1, PV 1 PV = FV [11+) Period 1% 2% 3% 4% 9% 10% 11% 12% 1 ... 0.980 2 3 4 5 7 8 9 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.853 0.844 0.836 0.828 0.820 0.780 0.742 0.672 0.60B 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.728 0.714 0.700 0.686 0.673 0.610 0.552 0.453 0.372 10 11 12 13 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.623 0.605 0.587 0.570 0.554 0.478 0.412 0.307 0.228 5% 0.952 0.907 0.864 0.823 0.784 0.746 0.711 0.677 0.645 0.614 0.585 0.557 0.530 0.505 0.481 0.458 0.436 0.416 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.534 0.513 0.494 0.475 0.456 0.375 0.30B 0.208 0.141 Percent 6% 7% 0.943 0.935 0.890 0.873 0.840 0.816 0.792 0.763 0.747 0.713 0.705 0.666 0.665 0.623 0.627 0.582 0.592 0.544 0.558 0.508 0.527 0.475 0.497 0.444 0.469 0.415 0.442 0.388 0.417 0.362 0.394 0.339 0.371 0.317 0.350 0.296 0.331 0.277 0.312 0.258 0.233 0.184 0.174 0.131 0.097 0.067 0.054 0.034 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.292 0.270 0.250 0.232 0.215 0.146 0.917 0.842 0.772 0.708 0.650 0.596 0.547 0.502 0.460 0.422 0.388 0.356 0.326 0.299 0.275 0.252 0.231 0.212 0.194 0.178 0.116 0.075 0.032 0.013 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.218 0.198 0.180 0.164 0.149 0.092 0.057 0.022 0.009 0.901 0.812 0.731 0.659 0.593 0.535 0.482 0.434 0.391 0.352 0.317 0.286 0.258 0.232 0.209 0.188 0.170 0.153 0.138 0.124 0.074 0.044 14 0.153 15 16 17 18 19 20 25 0.396 0.377 0.295 0.231 0.142 0.087 0.163 0.146 0.130 0.116 0.104 0.059 0.033 0.011 0.003 30 40 0.099 0.046 0.015 0.005 50 0.021 Appendix (concluded) Present value of $1 Percent Period 13 15 16x 183 10 20 25 so 1 0885 0,783 2 0.667 0.444 0.296 0.19B 3 4 35 0.741 0.549 0.406 0301 0.223 0.165 0.122 0.091 5 ...... F 7 40. 0.714 0.510 0.364 0.260 0.186 0.133 0.095 0.06B 0.04B 0.035 0.025 B 9 0693 0613 0.543 0.4 0,425 0.376 0.333 0.295 0.261 0.231 0.204 . 181 0,160 0, 141 . 125 0.111 0.08 .087 .047 0.026 10 14 0.877 0.769 0.675 0592 0.519 0.456 0.400 0.351 0.270 0.237 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0,003 .073 0.038 0.020 0.005 0.001 0.870 0.756 0.658 0.572 0.497 0.432 0376 0327 02B4 0247 0.215 0.187 0.163 0.141 0.123 0.107 0.093 .1 .070 0 061 oo30 .015 .004 0.001 0.833 0694 0.579 0.482 0.402 0.335 0279 0.233 0.14 0.162 0.135 0.112 0 093 007 0.065 o862 0.743 0.641 0.552 0.476 0,410 0354 o 305 0.263 0227 . 195 . 16B 0.145 0 125 0.10B 0 093 . 0.069 0.000 .051 .024 0012 0.003 0.001 0.706 0.593 0.499 0.419 0.352 0.296 0.249 0.209 0.176 0.148 0.124 . 104 0 088 0074 0 062 0052 11 12 13 14 17 0.855 0.731 0.624 0534 0.456 0390 0.333 0.25 0.243 0.20 0.178 0.152 0.130 0.111 0.095 0.081 0,069 0,059 0,051 0.043 .020 0.009 0,002 0.847 0.718 0009 0.515 0437 0.370 0.314 0.266 0.225 . 191 0.162 0.137 0,1 10 0.099 0.084 0.071 0.060 0.051 0.043 0.037 0016 o 007 0.001 30 0.769 0592 0.455 0.30 269 o 207 0.159 0.123 0.094 0.073 0,056 0,043 0.033 0.025 0.020 0.015 0.012 0.009 0.007 0.005 0.001 0.640 0.512 04 10 0328 0.262 0210 0.168 0.134 0, 107 0,086 0.069 0.055 0.044 0.035 0.02B 0.023 0.018 0.014 0.012 0.004 0.001 0.132 0.088 o 059 0039 0.026 .017 0.012 0.000 0.005 0.02 0.002 0.067 .050 .037 0 027 0.020 0.015 .011 0.006 0.005 0.003 0.002 0.001 15 16 0.054 0.018 0.013 0009 0006 0.005 0.003 0002 0.002 0.001 17 0.001 0.001 0 18 19 20 25 30 0.044 0.037 0.031 0 0.045 0.038 0.031 0.026 0010 0004 0.001 0 0.013 0.005 0.001 0 40 0.000 0.002 0 50