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) Year Cash Flow 1 2 4 Profitability index $ 8,000 6,000 7,000 6,600 Profitability index Project Y (Slow-Motion Replays of Commercials) ($36,000 Investment) Cash Flow $ 18,000 11,000 12,000 14,000 a. Calculate the profitability index for project X. (Do not round intermediate calculations and round your answer to 2 decimal places.) Year 1 2 3 4 b. Calculate the profitability index for project Y. (Do not round intermediate calculations and round your answer to 2 decimal places.) O Project X O Project Y 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 12 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula 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 proftability index for project Y. (Do not round intermediate calculations and round your answer to 2 decimal places.) c. Which project would you seiect based on the profitability index? Project X ProjectY