You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 14 percent. Use Appendix B fc an approximate answer but calculate your final answer using the formula and financial calculator methods. Project X (Videotapes of the Weather Report) ($54,000 Investment) Year Cash Flow $27,000 1 25,000 25,000 23,600 2234 Profitability index Project Y (Slow-Motion Replays of Commercials) ($74,000 Investment) Cash Flow Profitability index Year a. Calculate the profitability index for project X. (Do not round intermediate calculations and round your ansv to 2 decimal places.) 1234 O Project X O Project Y $ 37,000 30,000 31,000 33,000 b. Calculate the profitability index for project Y. (Do not round intermediate calculations and round your answer to 2 decimal places.) c. Which project would you select based on the profitability index?

You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 14 percent. Use ARpendix B an approximate answer but calculate your final answer usin rmula and financial calculator methods a. Calculate the profitability index for project X. (Do not round intermediate calculations and round your answer to 2 decimal places.) b. Calculate the profitability index for project \\( Y \\) (Do not round intermediate calculations and round your answer to 2 decimal places.) c. Which project would you select based on the profitability index? Project \\( X \\) Project Y