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Labeau Products, Limited, of Perth, Australia, has $19,000 to invest. The company is trying to decide between two alternative uses fo the funds as follows:
Labeau Products, Limited, of Perth, Australia, has $19,000 to invest. The company is trying to decide between two alternative uses fo the funds as follows: The company's discount rate is 14%. Click here to view and to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept? Complete this question by entering your answers in the tabs below. Compute the net present value of Project X. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) Labeau Products, Limited, of Perth, Australia, has $19,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: The company's discount rate is 14%. Click here to view and to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept? Complete this question by entering your answers in the tabs below. Compute the net present value of Project Y. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) The net present values should be computed using a 10% discount rate. The company wants your assistance in determining whi project to accept first, second, and so forth. Required: 1. Compute the profitability index for each project. 2. In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return. Complete this question by entering your answers in the tabs below. Compute the profitability index for each project. (Round your answers to 2 decimal places.)
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