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Crane Compary is considering two different, mutually excusive capial expenditure proposals. Project A will cost 3593,000, has an expected useful life of 15 years and

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Crane Compary is considering two different, mutually excusive capial expenditure proposals. Project A will cost 3593,000, 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 cach flows by $51,400. A discount rate of 8% is appropriate for both projects. Click here to view the factor table. Compute the net present value and profitability index of each project. (f the net present value is negative, use either a negutive sign preceding the number e3 -45 or porentheser es (45). Round present volue answers to 0 decimal ploces es. 125 and profitabllity indor anowers to 2 decimal ploces, es. 15.25. For calculation purposes, use 5 decimal ploces as disployed in the foctor table provided) Which project should be accepted based on Net Present Value? should be accepted. Which prolect should be accepted based on profitability index

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