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Crane Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $593,000, has an expected useful life of 15 years and
Crane Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $593,000, has an expected useful life of 15 years and a salvage value of zero, and is expected to increase net annual cash flows by $75,000. Project B will cost \$397,000, has an expected useful life of 15 years and a salvage value of zero, and is expected to increase net annual cash flows by $51,400. A discount rate of B% is appropriate for both projects. Click here to view the factor table. Compute the net present value and profitability index of each project. Of the net present value is negative, use either a negative sign preceding the number eg 45 or parentheses e (45). Round present value answers to 0 decimal ploces, es. 125 and profitability index answers to 2 decimal places, eg. 15.25. For calculation purposes, use 5 decimal ploces as displayed in the foctor table provided.) Which project should be accepted based on Net Present Value
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