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i need help with required 1 & 2 Rowan Company is considering two alternative investment projects. Each requires a $255,000 initial investment Project A is

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Rowan Company is considering two alternative investment projects. Each requires a $255,000 initial investment Project A is expected to generate net cash flows of $65,000 per year over the next six years. Project B is expected to generate net cash flows of $55,000 per year over the next seven years. Management requires an 8% rate of return on its Investments. (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Compute each project's not present value 2. Compute each project's profitability index 3. If the company can choose only one project, which should it choose, based on profitability index? Required 1 Required 2 Required 3 Compute each project's net present value. (Do not round Intermediate calculations. Round your present value factor to 4 decimals and your final answers to the nearest whole dollar.) Project A Chart values are based on: n 1 8% Amount x PV Factor Select Chart Present Value of an Annuity of 1 Present Value $ 0 $ 65,000 X Present value of cash inflows Initial investment Net present value Project B Chart values are based on: 8% Amount 55,000 PV Factor Select Chart Present Value of an Annuity of 1 Present Value $ $ 0 Present value of cash inflows Initial investment Net present value Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute each project's profitability Index. (Do not round Intermediate values, Enter your answers rounded to the nearest whole dollar.) Numerator Profitability Index Denominator 1 Profitability index Project Project B 0 0 Required 1 Required 3 >

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