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Question 4 Beacon Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost dollar470,546, has an expected useful life of 12
Question 4 Beacon Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost dollar470,546, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by dollar73,400. Project B will cost dollar301,555, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by dollar49,100. A discount rate of 9% is appropriate for both projects
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