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The two projects below are possible investments. You require a return of 12%.

The two projects below are possible investments. You require a return of 12%.

YearProject YProject Z
0-$31,000-$60,000
114,00024,000
212,40023,000
314,80022,000
410,40021,000


The profitability index for project Y is____, for project Z is_____

The NPV for project Y is____,for project Z is_____

Based on the above calculations, project ____ should be accepted.

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