You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 12 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Project X (Videotapes of the Weather Report) ($16,000 Investment)						Project Y (Slow-Motion Replays of Commercials) ($36,000 Investment)
Year		Cash Flow				Year		Cash Flow
1		$	8,000			1		$	18,000
2			6,000			2			11,000
3			7,000			3			12,000
4			6,600			4			14,000

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.)