Question: You are asked to evaluate the following two projects for Boring Corporation. Use a discount rate of 12 percent. Use Aprendix B. Project X (DVDs

You are asked to evaluate the following two projects for Boring

You are asked to evaluate the following two projects for Boring Corporation. Use a discount rate of 12 percent. Use Aprendix B. Project X (DVDs of the Weather Reports) ($26,000 Investment) Year Cash Flow 1 $13,000 2 11,000 3 12,000 4 11,600 Project Y (Slow-Motion Replays of Commercials) (546 ,000. Investment) Year Cash Flow 1 $23,003 2 16,000 17,000 + 19.000 2. Calculate the profitability index for project X (Round "PV Factor" to 3 decimal places. Round the final answer to 2 decimal ploces.) PI b. Calculate the profitability Index for projectY (Round "PV Factor" to 3 decimal places. Round the final answer to 2 decimal places.) PI c. Using the NPV method combined with the Plapproach, which project would you select? Use a discount rate of 12 percent Genel O Project Y Project x

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