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Coore Manufacturing has the following two possible projects. The required return is 9 percent. Year Project Y Project Z -$28,200 0 -$62,000 14,200 16,000 2 12,600 33,000 3 15,000 14,000 4 10,600 31,000 a. What is the profitability index for each project? (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? (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

Coore Manufacturing has the following two possible projects. The required return is 9 percent. Year Project Y Project Z -$28,200 0 -$62,000 14,200 16,000 2 12,600 33,000 3 15,000 14,000 4 10,600 31,000 a. What is the profitability index for each project? (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? (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

Essentials Of Investments
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
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Coore Manufacturing has the following two possible projects. The required return is 9 percent. Year Project Y Project Z -$28,200 0 -$62,000 14,200 16,000 2 12,600 33,000 3 15,000 14,000 4 10,600 31,000 a. What is the profitability index for each project? (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? (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
Transcribed Image Text:Coore Manufacturing has the following two possible projects. The required return is 9 percent. Year Project Y Project Z -$28,200 0 -$62,000 14,200 16,000 2 12,600 33,000 3 15,000 14,000 4 10,600 31,000 a. What is the profitability index for each project? (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? (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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