Problem $12-19($Algo$)$ Use of profitability index $[$LO$12-4]$

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.

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

c$.$ Which project would you select based on the profitability index?

Project $x$

Project $Y$