Question: Help You are asked to evaluate the following two projects for Boring Corporation. Use a discount rate of 10 percent. Use Appendix B. Year Project

Help You are asked to evaluate the following two projects for Boring Corporation. Use a discount rate of 10 percent. Use Appendix B. Year Project X (DVDS of the Weather Reports) ($34,000 Investment) Cash Flow 1 $17,000 2 15,000 3 16,000 4 15,600 Project Y (Slow-Motion Replays of Commercials) ($54,000 Investment) Cash Flow 1 $27,000 2 20,000 3 21,000 4 23,000 Year a. Calculate the profitability index for project X. (Round "PV Factor" to 3 decimal places. Round the final answer to 2 decimal places.) PI b. Calculate the profitability index for project Y. (Round "PV Factor" to 3 decimal places. Round the final answer to 2 decimal places.) PI c. Using the NPV method combined with the PI approach, which project would you select? Use a discount rate of 10 percent. Project Y Project X

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