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Blossom Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost 5530,000 , has an expected useful life of 12 ycars

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Blossom Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost 5530,000 , has an expected useful life of 12 ycars and a salvage value of zero, arid is expected to increase net annual cish flows by $73,000, Project B will cost $346,000, has in expected usctul life of 12 yoars and a salvage value of zero, and is expected to increase net annual cash flows by $98,800. A discount rate of 7% is appropriate for both projects. Click here to view PV table. Compute the net present value and profitability index of each project. (I) the net present value is negative, usc elther a negative slyn preceding the number eg -45 or parentheses eg (45). Round present value answers to 0 decimal ploces, es. 125 ond profitabillty index answers to 2 decimal ploces, es. 15.25. For calculation purposes, use 5 decimal ploces os displayed in the foctor table orovided) Which project should be accepted based on Net Present Value? should be accepted. Which project should be accepted based on profitability index

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