Question
Ink Enterprises provided the belowtwo alternative investments being considered. Ink Enterprises requires an 8% return from its investments. (PV of $1,FV of $1,PVA of $1,
Ink Enterprises provided the belowtwo alternative investments being considered. Ink Enterprises requires an 8% return from its investments. (PV of $1,FV of $1,PVA of $1, andFVA of $1)(Use appropriate factor(s) from the tables provided.)
Project X1Project X2Initial investment$(108,000)$(176,000)Expected net cash flows in year:139,00081,000249,50071,000374,50061,000
a.Compute each project's net present value.
b.Compute each project's profitability index. If the company can choose only one project, which should it choose?
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
1119563097, 9781119563099
