Question: PLEASE SHOW YOUR WORK Net Present Value and Profitability Index. Robben Manufacturing has the following two possible projects. The required return is 12 percent. Please
PLEASE SHOW YOUR WORK
Net Present Value and Profitability Index. Robben Manufacturing has the following two possible projects. The required return is 12 percent. Please answer A, B, and C questions below the chart below. Thanks!!
Year Project Y Project Z
0 -43,400 -78,000
119,800 32,000
217,500 30,100
320,700 29,500
4 14,600 27,300
A) What is the profitability index for each project?
B) What is he NPV for each project?
C) Which, if either, of the projects should the company accept?
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