Dahlia Manufacturing has the following two possible projects. The required return is 10 percent. Year Project Y Project Z 0 $27,400 $54,000 1 13,400 20,000 2 11,800 25,000 3 14,200 18,000 4 9,800 23,000
Required:
(a) What is the profitability index for each project?
(b) What is the NPV for each project?