Problem 10.16 a-b (Solution Video) Wildhorse 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 18.48 percent for such projects. ion Production Capacity Year Product Line Expansion Expansion -$2,307,400 -$9,999,700 690,700 2,204,400 830,300 2,204,400 830,300 2,204,400 830,300 6,044,600 830,300 6,044,600 U AWNO 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.) NPV of product line expansion is NPV of production capacity expansion is b. Should both projects be accepted? or either? or neither? Explain your reasoning. Wildhorse should accept Show Work Click if you would like only the product line expansion neither project only the production capacity expansion both projects LINK TO TEXT VIDEO: SIMILAR PROBLEM Problem 10.17 Sunland Mills management is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses 11.5 percent to discount such project cash flows. Year System 100 -$1,645,600 263,110 449,930 581,840 803,400 System 200 - $1,687,100 592,900 722,000 618,800 328,700 A WN What is the NPV of the systems? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors and intermediate calculations. Round final answers to o decimal places, e.g. 5,275.) NPV of system 100 is s NPV of system 200 is Which system should be chosen? Sunland should choose br this question: Open Show Work Click if you would like neither system System 200 System 100