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Posted on Jul 19, 2024

You are asked to evaluate the following two projects for Boring Corporation. Use a discount rate of 12 percent. Use Appendix B. Project X (DVDS

You are asked to evaluate the following two projects for Boring Corporation. Use a discount rate of 12 percent. Use Appendix B. Project X (DVDS of the Weather Reports) ($18,000 Investeent) Year Cash Flow 1 $24,000 2 22,000 3 23,000 22,600 Project Y (Slow Motion Replays of Comercials) ($68,000 Investment) Year Cash Flow 1 $34,000 2 27.000 3 28,000 4 30,000 a. Calculate the profitability Index for project X (Round "PV Foctor" to 3 decimal places. Round the final answer to 2 decimal places.) b. Calculate the profitability Index for project Y. (Round "PV Factor" to 3 decimal places. Round the final answer to 2 decimal places.) PI c. Using the NPV method combined with the Plapproach, which project would you select? Use a discount rate of 12 percent Project Project X 29 TE 1 100 10 ROTI 101 04 ICE HU ILO 01 00 16 15 2014 100 LO DU 1108 910 16 OC a LI 21 IT en TI SER TO ICO 51 CH 1613 GO OZO 020 sto O O KO POVO 0107 014 1200 20 19 02 LED NO BB TE GO 0.210 20 0314 0122 1166 RES YO DAD D. 20 IND DO SET DO SCO LIB LO GA CHO 0.419 . RO LOCE 09 2558 0:49 0.572 TO CWO O 0.410 0512 0613 wo se 06 515 0.00 0718 017 1110 510 D. 05 761 35% Y 06 0.0 OT 14 . OR 20 VO ZILE D NE SO CHO SET 0. GS 175 DRO VE Pere MOS 40% WE VI VE VI ANIME HUB PEDS 0.08 O co zao 2500 0.05 0.00T CH OCD so SIOS PO More HO MED TO 0.013 0.012 3.025 116 0.178 011 0212 0.046 0.00 0.145 IEB O WED SEO TETO 10 TO SE TEO ESPO 550 0190 NO O O 0.62 0.70 20 ID 1910 10 OTO SITO CEO ORO 0.412 . 54 0570 0.52 ZICO IO LO MED 0.277 0.478 51 0.11.36 0 120 TECO HO O CISO TO WO LED TO DKO 0.416 0.45 0.450 401 IN 17 16 0.220 29 0315 140 0.39 0.417 LORO CHO 0.714 0.720 0.70 0.74 SI 0.42 19 OCHO TO PO 0.275 0.299 0.35 0:36 0.55 0.577 0.601 O 0.61 ICO BRO ERO ZO 60 USED MED Pare 500 OSO 250 SNSD 0.773 29 100 0.700 GM . 0.444 0.475 0.500 0544 . 0429 16 ISO 0.650 ZICO TO 16C ROYO 190 WO SO SOD PIED 0.722 144 0.70 0.700 G. 0.400 0.502 0507 ot *6 HONO | OD LO KUTO LUTO 500 2230 OLD IGLO 00 OLD KISO LYO 0.65 0,677 0.711 0.766 0.784 OS O 7 0.933 0.42 0535 D. 30 WO 0.837 MAS O O 1560 ter TO SOTO 0.707 0.712 0.80 0.720 0.772 0.16 0.731 0.005 0.713 0.23 0. 0.83 Las 0.30 04 0.92 0.735 074 0.857 ON 19TO 206 ware WO SEO 2360 0.751 0.005 0.500 10% ro 1050 HO 126 0 OD 090 LUSO 0.317 0.01 0050 w V VO ...+1-14-M "M' & XIAN3ddv roduction/bne/Ryerson/block11ce/Appendix_b.jpg Connect X School of Business Syllabus myCapu - Capilano true! * You are asked to evaluate the following two projects for Boring Corporation. Use a discount rate of 12 percent. Use Appendix B. Project X (DVDS of the Weather Reports) ($18,000 Investeent) Year Cash Flow 1 $24,000 2 22,000 3 23,000 22,600 Project Y (Slow Motion Replays of Comercials) ($68,000 Investment) Year Cash Flow 1 $34,000 2 27.000 3 28,000 4 30,000 a. Calculate the profitability Index for project X (Round "PV Foctor" to 3 decimal places. Round the final answer to 2 decimal places.) b. Calculate the profitability Index for project Y. (Round "PV Factor" to 3 decimal places. Round the final answer to 2 decimal places.) PI c. Using the NPV method combined with the Plapproach, which project would you select? Use a discount rate of 12 percent Project Project X 29 TE 1 100 10 ROTI 101 04 ICE HU ILO 01 00 16 15 2014 100 LO DU 1108 910 16 OC a LI 21 IT en TI SER TO ICO 51 CH 1613 GO OZO 020 sto O O KO POVO 0107 014 1200 20 19 02 LED NO BB TE GO 0.210 20 0314 0122 1166 RES YO DAD D. 20 IND DO SET DO SCO LIB LO GA CHO 0.419 . RO LOCE 09 2558 0:49 0.572 TO CWO O 0.410 0512 0613 wo se 06 515 0.00 0718 017 1110 510 D. 05 761 35% Y 06 0.0 OT 14 . OR 20 VO ZILE D NE SO CHO SET 0. GS 175 DRO VE Pere MOS 40% WE VI VE VI ANIME HUB PEDS 0.08 O co zao 2500 0.05 0.00T CH OCD so SIOS PO More HO MED TO 0.013 0.012 3.025 116 0.178 011 0212 0.046 0.00 0.145 IEB O WED SEO TETO 10 TO SE TEO ESPO 550 0190 NO O O 0.62 0.70 20 ID 1910 10 OTO SITO CEO ORO 0.412 . 54 0570 0.52 ZICO IO LO MED 0.277 0.478 51 0.11.36 0 120 TECO HO O CISO TO WO LED TO DKO 0.416 0.45 0.450 401 IN 17 16 0.220 29 0315 140 0.39 0.417 LORO CHO 0.714 0.720 0.70 0.74 SI 0.42 19 OCHO TO PO 0.275 0.299 0.35 0:36 0.55 0.577 0.601 O 0.61 ICO BRO ERO ZO 60 USED MED Pare 500 OSO 250 SNSD 0.773 29 100 0.700 GM . 0.444 0.475 0.500 0544 . 0429 16 ISO 0.650 ZICO TO 16C ROYO 190 WO SO SOD PIED 0.722 144 0.70 0.700 G. 0.400 0.502 0507 ot *6 HONO | OD LO KUTO LUTO 500 2230 OLD IGLO 00 OLD KISO LYO 0.65 0,677 0.711 0.766 0.784 OS O 7 0.933 0.42 0535 D. 30 WO 0.837 MAS O O 1560 ter TO SOTO 0.707 0.712 0.80 0.720 0.772 0.16 0.731 0.005 0.713 0.23 0. 0.83 Las 0.30 04 0.92 0.735 074 0.857 ON 19TO 206 ware WO SEO 2360 0.751 0.005 0.500 10% ro 1050 HO 126 0 OD 090 LUSO 0.317 0.01 0050 w V VO ...+1-14-M "M' & XIAN3ddv roduction/bne/Ryerson/block11ce/Appendix_b.jpg Connect X School of Business Syllabus myCapu - Capilano true! *