Problem 12-25 You are asked to evaluate the following two projects for Boring Corporation. Use a discount rate of 12 percent. Use Appendix B. Project X (DVDs of the Weather Reports) ($50,000 Investment) Year Cash Flow 1 $25,000 2 23,000 3 24,000 4 23,600 Project Y (Slow-Motion Replays of Commercials) ($70,000 Investment) Year Cash Flow 1 $35,000 2 28,000 3 29,000 4 31,000 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 Pl approach, which project would you select? Use a discount rate of 12 percent. O Project Y O Project X