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NPV unequal lives. Singing Fish Fine Foods has $2,090,000 for capital investments this year and is considering two potential projects for the funds. Project 1
NPV unequal lives. Singing Fish Fine Foods has $2,090,000 for capital investments this year and is considering two potential projects for the funds. Project 1 is updating the store's deli section for additional food service. The estimated after-tax cash flow of this project is $560,000 per year for the next five years. Project 2 is updating the store's wine section. The estimated annual after-tax cash flow for this project is $490,000 for the next six years. If the appropriate discount rate for the deli expansion is 9.5% and the appropriate discount rate for the wine section is 9.0%, use the NPV to determine which project Singing Fish should choose for the store. Adjust the NPV for unequal lives with the equivalent annual annuity. Does the decision change? . If the appropriate discount rate for the deli expansion is 9.5%, what is the NPV of the deli expansion? $ (Round to the nearest cent.)
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