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cloudy projects are given in the following table. The firm uses a discount rate of 15.04 percent for such projects. Year Product Line Expansion
cloudy projects are given in the following table. The firm uses a discount rate of 15.04 percent for such projects. Year Product Line Expansion Production Capacity Expansion -$2,166,800 -$7,516,100 1 647,500 2,315,400 2 807,400 2,315,400 3 4 5 807,400 2,315,400 807,400 807,400 3,165,000 3,165,000 F1 a. What are the NPVs of the two projects? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.g. 1,525.) @ 12 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. W S DII F2 F3 Search F4 F5 A F6 zoom PrtScn Home End Pc F7 F8 F9 F10 # 3 4 #4 $ % & 5 6 89 ) 7 8 9 LLI E R T Y U I D F G H J K P
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