a. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Which, if either, of the projects should the company accept?
a. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Which, if either, of the projects should the company accept?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Problem 8-17 NPV and Profitability Index [LO 4, 6]
Coore Manufacturing has the following two possible projects. The required return is 10%.
Please help me solve this question using Excel
![Problem 8-17 NPV and Profitability Index [LO 4, 6]
Coore Manufacturing has the following two possible projects. The required
return is 10 percent.
Year
1
2
3
4
Project Y
-$ 28,400
14,400
12,800
15, 200
10,800
Project Z
-$ 64,000
15,000
35,000
13,000
33,000
a. What is the profitability index for each project?
Note: Do not round intermediate calculations and round your answers
to 3 decimal places, e.g., 32.161.
b. What is the NPV for each project?
Note: Do not round intermediate calculations and round your answers
to 2 decimal places, e.g., 32.16.
c. Which, if either, of the projects should the company accept?
a. Project Y
Project Z
b. Project Y
Project Z
c. Accept project](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F483c3d17-1621-47af-bfd2-86acecf64938%2F4d7d34e5-b560-462d-bab1-62085abd9f35%2Fmj4r749_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 8-17 NPV and Profitability Index [LO 4, 6]
Coore Manufacturing has the following two possible projects. The required
return is 10 percent.
Year
1
2
3
4
Project Y
-$ 28,400
14,400
12,800
15, 200
10,800
Project Z
-$ 64,000
15,000
35,000
13,000
33,000
a. What is the profitability index for each project?
Note: Do not round intermediate calculations and round your answers
to 3 decimal places, e.g., 32.161.
b. What is the NPV for each project?
Note: Do not round intermediate calculations and round your answers
to 2 decimal places, e.g., 32.16.
c. Which, if either, of the projects should the company accept?
a. Project Y
Project Z
b. Project Y
Project Z
c. Accept project
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