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Oriole Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $ 4 6 9 , 0 0 0 , has
Oriole Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $ has an expected useful life of years and a salvage value of zero, and is expected to increase net annual cash flows by $ Project B will cost $ has an expected useful life of years and a salvage value of zero, and is expected to increase net anrual cash flows by $ A discount rate of is appropriate for both projects.
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Calculate the net present value and profitability index of each project. If the net present value is negative, use either a negative sign preceding the number eg or parentheses eg Round present value answers to decimal places, eg and profitability index answers to decimal places, eg For calculation purposes, use decimal places as dilsplayed in the factor table provided, eg
tableProject AProject BNet present value $Profitability index,,
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