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help me please vanhoe Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $448,000, has an oppected useful life of
help me please
vanhoe Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $448,000, has an oppected useful life of 12 years and a salvage value of zero, and is expected to increase net annual cash flows by $69,500. Project B will cost $290,000, has an expected useful life of 12 years and a salvage value of zero, and is expected to increase net annual cash flows by 548,400. A discount rate of 98 is appropriate for both projects. Click here to view the factor table. Compute the net present value and profitability index of each project. ff the net present value is negotive, use either a negotive sign greceding the number es 45 or parentheses 6 (45). Round present velue answers to 0 decimol places, eg. 125 and profitabiilty index answers to 2 declmal pioces, 4.5 15.25. For calculation purposes use 5 decimel ploces as displayed in the foctor fable provided) Which profect should be accepted bused on Net Present Value? Which project should be accepted based on Net Present Value? should be accepted. Which project should be accepted based on profitability index? should be accepted Step by Step Solution
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