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Green Planet Company has an opportunity to manufacture and sell one of two new products for a six- year period. It has computed the cost

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Green Planet Company has an opportunity to manufacture and sell one of two new products for a six- year period. It has computed the cost and revenue estimates for each product as follows: Product A Product B Initial investment: Cost of equipment (zero salvage value) KD 420,000 KD 600,000 Annual revenues and costs: Sales revenues 400,000 450,000 Variable expenses 180,000 203,000 Depreciation expense 74,000 114,000 Fixed out-of-pocket operating costs 87,000 54,000 The company's discount rate is 17%. Required: Cakeslate the following: Net Present Value for Product A = KD Net Present Value for Product B = KD Profitability index for Product A - Profitability index for Product B - . Which of these two products will the company prefer

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