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%.
| Year | Project Y | Project Z |
| 0 | -$31,000 | -$60,000 |
| 1 | 14,000 | 24,000 |
| 2 | 12,400 | 23,000 |
| 3 | 14,800 | 22,000 |
| 4 | 10,400 | 21,000 |
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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The two projects below are possible investments. You require a return of 12%.
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