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I'm struggling and need help APPLY THE CONCEPTS: Net present value and Present value index McCall Corp. is looking to invest in Project A or
I'm struggling and need help
APPLY THE CONCEPTS: Net present value and Present value index McCall Corp. is looking to invest in Project A or Project B. The data surrounding each project is provided below. McCall's cost of capital is 10%. Project A This project requires an initial investment of $167,500. The project will have a life of 3 years. Annual revenues associated with the project will be $130,000 and expenses associated with the project will be $35,000. Project B This project requires an initial investment of $132,500. The project will have a life of 5 years. Annual revenues associated with the project will be $105,000 and expenses associated with the project will be $60,000. Calculate the net present value and the present value index for each project using the present value tables provided below. Present Value of $1 (a single sum) at Compound Interest. Present Value of an Annuity of $1 at Compound Interest. Note: Use a minus sign to indicate a negative NPV. If an amount is zero, enter "0". Enter the present value index to 2 decimals.
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