Question: Robben Manufacturing has the following two possible projects. The required return is 12 percent. Year Project Y Project Z 0 $ 27,600 $ 56,000 1

Robben Manufacturing has the following two possible projects. The required return is 12 percent.

Year	Project Y		Project Z
0	$	27,600	$	56,000
1		13,600		19,000
2		12,000		27,000
3		14,400		17,000
4		10,000		25,000

a. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)

	Profitability index
Project Y
Project Z

b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	NPV
Project Y	$
Project Z	$

c. Which, if either, of the projects should the company accept?

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