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Question 2 Partially correct Mark 2.86 out of 5.00 p Flag question Net Present Value Analysis Cooper Company must evaluate two capital expenditure proposals. Cooper's
Question 2 Partially correct Mark 2.86 out of 5.00 p Flag question Net Present Value Analysis Cooper Company must evaluate two capital expenditure proposals. Cooper's hurdle rate is 1096. Data for the two proposals follow. Proposal X Proposal Y Required investment $120.000 $120.000 Annual after-tax cash inflows 24.000 After-tax cash inflows at the end of years 3. 6. 9. and 12 72.000 Life of project 12 years 12 years Using net present value analysis, which proposal is the more attractive? Do not use negative signs with your answers. Round PV answers to the nearest whole number. Use rounded answers for subsequent calculation of net present value. Proposal X Proposal Y Net present value Initial outflows 5 120.000 120.000 PV of future cash flows 163.529 1.586044 X Net present value 283.529 XI 12.170 X Which proposal is more attractive? Dronor
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