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19 0.59 points Labeau Products, Ltd., of Perth, Australia, has $21,000 to invest. The company is trying to decide between two alternative uses for
19 0.59 points Labeau Products, Ltd., of Perth, Australia, has $21,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest Invest in in Project Project Y Investment required Annual cash inflows $ 21,000 $21,000 $ 6,000 eBook Single cash inflow at the end of 6 years Life of the project 6 years $ 40,000 6 years References The company's discount rate is 15%. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept?
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