Robben Manufacturing has the following two possible projects. The required return is 10 percent. ...
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Accounting
Robben Manufacturing has the following two possible projects. The required return is 10 percent.
Year
Project Y
Project Z
0
$
28,900
$
54,000
1
14,900
12,500
2
13,300
40,000
3
15,700
10,500
4
11,300
38,000
a. What is the profitability index for each project? (Do not round intermediate calculations and 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 and 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? (Click to select)Project YNeitherProject Z
Answer & Explanation
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