You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 13 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) ($28,000 Investment)   Project Y (Slow-Motion Replays of Commercials) ($48,000 Investment) Year Cash Flow   Year Cash Flow 1 $ 14,000     1 $ 24,000   2   12,000     2   17,000   3   13,000     3   18,000   4   12,600     4   20,000        a. Calculate the profitability index for project X. (Do not round intermediate calculations and round your answer to 2 decimal places.)             b. Calculate the profitability index for project Y. (Do not round intermediate calculations and round your answer to 2 decimal places.)       c. Which project would you select based on the profitability index?   multiple choice Project X Project Y

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.