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

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Cullumber 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 10.54 percent for such projects. Year Product Line Expansion -$3,146,400 741,600 895,900 895,900 895,900 895,900 Production Capacity Expansion -$9,369,900 2,699,400 2,699,400 2,699,400 3,978,600 3.978,600 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.) 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. Cullumber should accept Click if you would like to show Work for this questions Open Show Work

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