Hearne Company has a number of potential capital investments. Because these projects vary in nature, initial investment, and time horizon, management is finding it difficult to compare them. Assume straight line depreciation method is used. Project 1: Retooling Manufacturing Facility This project would require an initial investment of $4,850,000. It would generate $865,000 in additional net cash flow each year. The new machinery has a useful life of eight years and a salvage value of $1,000,000. Project 2: Purchase Patent for New Product The patent would cost $3,400,000, which would be fully amortized over five years. Production of this product would generate $425,000 additional annual net income for Hearne. Project 3: Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new delivery trucks at a cost of $115,000 each. The fleet would have a useful life of 10 years, and each truck would have a salvage value of $5,000. Purchasing the fleet would allow Hearne to expand its customer territory resulting in $200,000 of additional net income per year.

Hey guys I need help figuring out how to get the right answers for all those wrong answers...Please leave your answers in decimal places as asked in the question. (If you can't read the question, please right click and select "open in a new window"

3. usma disocuml talttci 1() perl Hil Cdk:llale tri ntd decimal places and tinal answers to 2 decimal places.) Value o ent value txles c:Il pia ed ult, alueo F ent a u Future Val e muit t seen Value Arinuit 42 use a no nate facto s from the tables provided. Round your intermediate calculations to 4 t Answer is complete but not entirely correct. Net Present Value 231,188 50 Project 1 Projact 2 Project: 3 102 701.00)3 1,597.894.00) 4. Decermine the profitabililty Index of each projec: and priontze the projects for Haame. (Round your Intermeclate calculations to 2 decimal places. Round your final answers to 4 decimal places.) Answer is complete but not entirely correct. Renk Projec 1 Projet. 2 Prujett 3 1.047 12050 1 1.0302