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Project B: Overhaul the company website to optimize the user experience and generate more traffic from online advertising. This project would cost $200,000 and is
Project B: Overhaul the company website to optimize the user experience and generate more traffic from online advertising. This project would cost $200,000 and is expected to generate an additional $100,000 in sales for the next 10 years. Assume that the contribution margin is 42 percent and that there would be no increase in fixed costs, including depreciation.
Compute the NPV of each project assuming the cost of capital is 10 percent
Compute the profitability index for project B
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