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14 5 oints 2024025 eBook Rowan Company is considering two alternative investment projects. Each requires a $253,000 initial investment. Project A is expected to generate

image text in transcribedimage text in transcribedimage text in transcribed 14 5 oints 2024025 eBook Rowan Company is considering two alternative investment projects. Each requires a $253,000 initial investment. Project A is expected to generate net cash flows of $63,000 per year over the next six years. Project B is expected to generate net cash flows of $53,000 per year over the next seven years. Management requires an 9% rate of return on its investments. (PV of $1. EV of $1. PVA of S1, and EVA OLS) (Use appropriate fector(s) from the tables provided.) Required: 1. Compute each project's net present value. 2. Compute each project's profitability index 3. If the company can choose only one project, which should it choose, based on profitability index? Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Compute each project's net present value. (Do not round intermediate calculations. Round your present value factor to 4 decimals and your final answers to the nearest whole dollar.) Project A Net Cash Flows X Present Value of Annuity at 9% Present Value of Net Cash Flows Years 1-6 Net present value Project B Net Cash Flows Present Value of Annuity at 9% Present Value of Net Cash Flows Years 1-7 $ Net present value Required 2 > 14 15 points 02:40:08 eBook Rowan Company is considering two alternative investment projects. Each requires a $253,000 initial investment Project A is expected to generate net cash flows of $63,000 per year over the next six years. Project B is expected to generate net cash flows of $53.000 per year over the next seven years. Management requires an 9% rate of return on its investments (PV of$1. EV of $1. PVA of $1, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Required: 1. Compute each project's net present value 2. Compute each project's profitability index. 3. If the company can choose only one project, which should it choose, based on profitability index? Complete this question by entering your answers in the tabs below. o References Required 1 Required 2 Required 31 Compute each project's profitability index. (Do not round intermediate values. Enter your answers rounded to the nearest whole dollar) Pisject A Project Numerator Profitability Index Denominator: Profitability index 0 S 023954 ebook References Rowan Company is considering two alternative investment projects. Each requires a $253,000 initial investment. Project A is expected to generate net cash flows of $63,000 per year over the next six years. Project B is expected to generate net cash flows of $53,000 per year over the next seven years. Management requires an 9% rate of return on its investments (PV of $1. EV of $1. PVA of $1, and EVA af 5) (Use appropriate factor(s) from the tables provided.) Required: 1. Compute each project's net present value. 2. Compute each project's profitability index 3. If the company can choose only one project, which should it choose, based on profitability index? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 17 the company can choose only one project, which should it choose, based on profitability index? if the company can choose only one project, which should it choose, based on profitability index

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