Robben Manufacturing has the following two possible projects. The required return is 10 percent. ...
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Robben Manufacturing has the following two possible projects. The required return is 10 percent.
| Year | Project Y | Project Z | |||
| 0 | $ | 28,900 | $ | 54,000 | |
| 1 | 14,900 | 12,500 | |||
| 2 | 13,300 | 40,000 | |||
| 3 | 15,700 | 10,500 | |||
| 4 | 11,300 | 38,000 | |||
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.)
| Profitability index | ||
| Project Y | ||
| Project Z | ||
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.)
| NPV | |
| Project Y | $ |
| Project Z | $ |
c. Which, if either, of the projects should the company accept? (Click to select)Project YNeitherProject Z
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