Coore Manufacturing has the following two possible projects. The required return is 10 percent. Project Y -$ 27,900 Project Z -$ 59,000 13,900 17,500 30,000 Year 0 1 2 3 4 12,300 14,700 10,300 a. Project Y 15,500 28,000 a. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e- c. Which, if either, of the projects should the company accept?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Coore Manufacturing has the following two possible projects. The required return is 10 percent.
Project Y
-$ 27,900
13,900
Project Z
-$ 59,000
17,500
12,300
30,000
14,700
10,300
Year
0
1
2
3
4
15,500
28,000
a. What is the profitability index for each project?
Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 3-
b. What is the NPV for each project?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 3.
c. Which, if either, of the projects should the company accept?
a. Project Y
Project Z
b. Project Y
Project Z
c. Accept project
Transcribed Image Text:Coore Manufacturing has the following two possible projects. The required return is 10 percent. Project Y -$ 27,900 13,900 Project Z -$ 59,000 17,500 12,300 30,000 14,700 10,300 Year 0 1 2 3 4 15,500 28,000 a. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 3- b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 3. c. Which, if either, of the projects should the company accept? a. Project Y Project Z b. Project Y Project Z c. Accept project
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