Question
Bridgeport Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $478,000, has an expected useful life of 14 years and
Bridgeport Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $478,000, has an expected useful life of 14 years and a salvage value of zero, and is expected to increase net annual cash flows by $72,000. Project B will cost $288,000, has an expected useful life of 14 years and a salvage value of zero, and is expected to increase net annual cash flows by $46,000. A discount rate of 10% 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, e.g. -45 or parentheses, e.g. (45). Round present value answers to 0 decimal places, e.g. 125 and profitability index answer to 2 decimal places, e.g. 15.52. For calculation purposes, use five decimal places as displayed in the factor table provided, e.g. 1.25124.) Project A net present value; profitability index is what? Project B net present value, profitability index is what? N.B( I already saw that it had been answered, but when I sent the same answer, I was marked wrong; for Project B's net present value and Project A profitability index)
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