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3.Bayous Cash and Carry Building Supply Store is expanding its product line and its production capacity. The costs and expected cash flows of the two

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3.Bayous Cash and Carry Building Supply Store is expanding its product line and its production capacity. The costs and expected cash flows of the two projects are given below. The firm typically uses a discount rate of 15.4%. Year Product Line Production Expansion Capacity Expansion 0 $ (2,450,000) $ (8,137 250) 1 $ 500,000 $ 1,250,000 2 3 $ 825,000 $ 2,700,000 $ 850,000 $ 2,500,000 4 $ 875,000 $3,250,000 5 $ 895,000 $3,250,000 a. What are the NPVs of the two projects?(show calculation) NPV for Product Line Expansion: $ NPV for Product Capacity Expansion

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