Coore Manufacturing has the following two possible projects. The required return is 13 percent. Year Project Y Project Z 0 -$ 28,600 -$ 51,000 1 14,600 14,000 2 13,000 37,000 3 15,400 12,0 What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g 32.161. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. 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 13 percent.
Year Project Y Project Z 0 -$ 28,600 -$
51,000 1 14,600 14,000 2 13,000 37,000 3 15,400 12,0
What is the profitability index for each project?
Note: Do not round intermediate calculations and
round your answers to 3 decimal places, e.g
32.161. What is the NPV for each project? Note:
Do not round intermediate calculations and round
your answers to 2 decimal places, e.g., 32.16.
Which, if either, of the projects should the
company accept?
Transcribed Image Text:Coore Manufacturing has the following two possible projects. The required return is 13 percent. Year Project Y Project Z 0 -$ 28,600 -$ 51,000 1 14,600 14,000 2 13,000 37,000 3 15,400 12,0 What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g 32.161. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Which, if either, of the projects should the company accept?
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