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Please solve it quickly within 15 minutes and get two upvotes immediately. Thank you Ever-Green Manufacturing is considering two alternative investment proposals with the following
Please solve it quickly within 15 minutes and get two upvotes immediately. Thank you
Ever-Green Manufacturing is considering two alternative investment proposals with the following details: ProposalX Proposal Y Investment $400,000 $400,000 Useful life 4 years 5 years $150,000 Estimated annual net cash inflows $190,000 $0 Residual value $50,000 Target rate 10% 10% What is the net present value (NPV) of each Proposal? Present value of annuity of $1: 8% 9% 10% 1 0.926 $0.92 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 4 3.312 3.24 3.17 5 3.993 3.89 3.791 Present value of $1: 8% 9% 10% 1 0.926 0.917 0.909 2 0.857 0.842 0.826 3 0.794 0.772 0.751 4 0.735 0.708 0.683 5 0.681 0.65 0.621 Select one: O Proposal X:$599,700, Proposal Y: $ 602,300 O Proposal X :$199,700, Proposal Y: $602,300 O Proposal X:$599,700, Proposal Y: $ 202,300 O Proposal X :$ 199,700, Proposal Y: $202,300 O Proposal X :$ 400,000, Proposal Y: $400,000 O Proposal X :$190,000, Proposal Y: $202,000Step by Step Solution
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