Using the net present value method profitability index and


You are asked to evaluate the following two projects for the Norton Corporation. Using the net present value method, profitability index, and IRR approach, which project would you select? Use a discount rate of 10 percent.

Project X (Videotapes of the Weather Report) ($10,000 Investment)

Year 1 CF(Cash Flow)= 5000

Year 2 CF= 3000

Year 3 CF= 4000

Year 4 CF= 3600

Project Y (Slow-Motion Replays of Commercials) ($30,000 investment)

Year 1 CF= 15000

Year 2 CF= 8000

Year 3 CF= 9000

Year 4 CF= 11000

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Financial Management: Using the net present value method profitability index and
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