What is the profitability index for each project

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Reference no: EM131598098

Dahlia Manufacturing has the following two possible projects. The required return is 11 percent.

Year Project Y Project Z

0 –$28,000 –$60,000

1 14,000 17,000

2 12,400 31,000

3 14,800 15,000

4 10,400 29,000

Required: (a) What is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).)

Profitability index

Project Y ________

Project Z ________

(b) What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

NPV

Project Y $________

Project Z $ ________

Reference no: EM131598098

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