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Bonita Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $ 4 7 6 , 0 0 0 , has
Bonita Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $ has an
expected useful life of years and a salvage value of zero, and is expected to increase net annual cash flows by $ Project B will
cost $ has an expected useful life of years and a salvage value of zero, and is expected to increase net annual cash flows by
$ A discount rate of is appropriate for both projects.
Click here to view the factor table.
Calculate the net present value and profitability index of each project. If the net present value is negative, use either a negative sign
preceding the number eg or parentheses eg Round present value answers to decimal places, eg and profitability index
answers to decimal places, eg For calculation purposes, use decimal places as displayed in the factor table provided, eg
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