Pharoah Industries is expanding its product line and its production capacity. The costs and expected cash flows of the two independent projects are given in the following table. The firm uses a discount rate of 13.15 percent for such projects. Year Product Line Expansion 0 1 23 4 5 -$2,428,900 591,300 732,400 732,400 732,400 732,400 Production Capacity Expansion NPV of product line expansion is NPV of production capacity expansion is -$6,443,100 LA 2,742,600 2,742,600 2,742,600 a. What are the NPVs of the two projects? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.) 3,146,100 3,146,100 1 SU

Pharoah Industries is expanding its product line and its production copacity. The costs and expected cash flows of the two independent projects are given in the following table The firm uses a discount rote of 13.15 percent for such profects. 2. What are the NPVs of the two projects? (Enter negative amounts using negative sign, e.s. -45.25. Do not round discount foctors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)