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Dahlia Manufacturing has the following two possible projects. The required return is 12 percent. Year Project...

Dahlia Manufacturing has the following two possible projects. The required return is 12 percent. 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 Required: (a) What is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).) Profitability index Project Y Project Z (b) What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) NPV Project Y $ Project Z $ (c) Which, if either, of the projects should the company accept?

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42 Cash flows PVF@12% Present value 43 Year 0$ (31,000) $ (60,000) 1 $14,000 $24,000 2 $ 12,400$ 23,000 3 $ 14,800 $22,000 4

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