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Help :) (CHAPTER 9) Your company has extra cash which it would like to use to invest into something new and profitable. There are two
Help :)
(CHAPTER 9) Your company has extra cash which it would like to use to invest into something new and profitable. There are two mutually exclusive projects under consideration. - Project \#1 will require an initial investment of $700, and the present value of all of its future estimated profits is $840. - Project \#2 will require an initial investment of $560, and the present value of all of its future estimated profits is $740. Based on this information, answer the following questions. Do NOT type the "\$" signs, and round your answers to whole dollars. Where applicable, don't forget the minus signs! (a) For Project \#1, the Net Present Value equals \$ (b) For Project \#2, the Net Present Value equals \$ (c) Based on the Net Present Values, your company should Project \#1 and Project \#2. (In each field, type accept or reject.) Step by Step Solution
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