(Appendix 13A and 13B)Roy Company is trying to decide whether to invest in one of two projects: X or Z.Associated data for each investment project follow: 
The equipment for each project is in Class 22 with a 30% maximum CCA rate.The income tax rate is 30%.Roy's after-tax cost of capital is 12%.
Required:
a)Calculate the net present value of each project,and indicate which appears preferable in terms of net present value.
b)Calculate the profitability index for each project,and indicate which project would be preferable using this investment criterion.
Definitions:
Scalp
The skin covering the head, excluding the face, and the hair that grows on it.
Transcranial Magnetic Stimulation
A noninvasive procedure that uses magnetic fields to stimulate nerve cells in the brain to improve symptoms of depression.
Neural Circuits
Complex networks of interconnected neurons that process and transmit information in the brain.
Lesion
Any damage or abnormal change in the tissue of an organism, usually caused by disease or trauma.
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