Calculate the profitability index for project x calculate, Financial Management

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Calculate the profitability index for project x calculate

You are asked to evaluate the following 2 projects for the Norton corporation. Use a discount rate of 12%

project x. Project Y

($16,000) ($36,000)

year. cash flow. year. cash flow

1. $8,000. 1. $ 18,000

2. 6,000. 2. 11,000

3. 7,000. 3. 12,000

4. 6,600. 4. 14,000

a. calculate the profitability index for project x

b. calculate the profitability index for project y

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Financial Management: Calculate the profitability index for project x calculate

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