M Sample Five-Year Marketing Plan for Paradise Kitchens... M Question 18-Quiz Vi Saved Help Save &...

Transcribed Image Text:

M Sample Five-Year Marketing Plan for Paradise Kitchens... M Question 18-Quiz Vi Saved Help Save & E Generator [Updated for 2024] Quiz: Valuation, Cost of Capital and Capital Budgeting aluation, Cost of Capital and Capital Budgeting i You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 10 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) ($24,000 Investment) Cash Flow Project Y (Slow-Motion Replays of Commercials) ($44,000 Investment) Year Year Cash Flow 1:30:16 1 $ 12,000 1 $ 22,000 2 10,000 2 15,000 3 11,000 3 16,000 4 10,600 4 18,000 Mc Graw Hill a. Calculate the profitability index for project X. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Profitability index b. Calculate the profitability index for project Y. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Profitability index ! 1 2 3 #3 80 F3 $ 4 2 < Prev 18 of 25 Next > APR 25 MacBook Air tv A 000 000 F4 DII DD F5 F6 F7 F8 F10 % do 5 6 Q W E R T Y A S D LL G 87 & H * 8 9 0 0 J K L < Z X C V B N M P V 34 F11 + 11 { [ ? M Sample Five-Year Marketing Plan for Paradise Kitchens... M Question 18-Quiz Vi Saved Help Save & E Generator [Updated for 2024] Quiz: Valuation, Cost of Capital and Capital Budgeting aluation, Cost of Capital and Capital Budgeting i You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 10 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) ($24,000 Investment) Cash Flow Project Y (Slow-Motion Replays of Commercials) ($44,000 Investment) Year Year Cash Flow 1:30:16 1 $ 12,000 1 $ 22,000 2 10,000 2 15,000 3 11,000 3 16,000 4 10,600 4 18,000 Mc Graw Hill a. Calculate the profitability index for project X. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Profitability index b. Calculate the profitability index for project Y. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Profitability index ! 1 2 3 #3 80 F3 $ 4 2 < Prev 18 of 25 Next > APR 25 MacBook Air tv A 000 000 F4 DII DD F5 F6 F7 F8 F10 % do 5 6 Q W E R T Y A S D LL G 87 & H * 8 9 0 0 J K L < Z X C V B N M P V 34 F11 + 11 { [ ?