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Carla Vista Industries is expanding its product line and its production capacity. The costs and expected cash flows of the two independent projects are given

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Carla Vista Industries is expanding its product line and its production capacity. The costs and expected cash flows of the two independent projects are given in the following table. The firm uses a discount rate of 17.40 percent for such projects. Year Product Line Expansion Production Capacity Expansion -$7,101,700 2,759,100 2,759,100 2,759,100 3,830,700 3,830,700 -$2,556,400 511,400 1,021,700 1.021,700 1,021,700 1,021,700 a. What are the NPVs of the two projects? (Enter negative amounts using negative signes. -4525. Do not round discount factors. Round other intermediate calculations and final answer to decimal places, es 1,525.) NPV of product line expansion is NPV of production capacity expansion is $ b. Should both projects be accepted? or either? or neither? Explain your reasoning Carla Vista should accept e Textbook and Media Attempts: 0 of 3 used Save for Cater Using multiple attempts will impact your score 20% score reduction after attempt 2

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