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Rowan Company is considering two alternative investment projects. Each requires a $261,000 initial Investment. Project A is expected 0 generate net cash flows of $71,000

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Rowan Company is considering two alternative investment projects. Each requires a $261,000 initial Investment. Project A is expected 0 generate net cash flows of $71,000 per year over the next six years. Project B is expected to generate net cash flows of $61,000 per vear over the next seven years. Management requites an 10% rate of return on its Investments (PV of \$1. FV of \$1, PVA of $1, and FVA (Use approprlate factor(s) from the tables provlded.) Required: 1. Compute each project's net present value. 2. Compute each project's profitability index 3. If the company can choose only one project which should it choose, based on profitablity Index? Compute each project's net present value. (Do not round intermediate calculations. Round your present value factor to 4 decimals and your final answers to the nearest whole dollar.) Compute each project's profitability index. (Do not round intermediate values. Enter your answers rounded to the neareit whole dollace) If the company can choose only one project, which should it choose, based on profitability index? Rowan Company is considering two alternative investment projects. Each requires a $261,000 initial Investment. Project A is expected 0 generate net cash flows of $71,000 per year over the next six years. Project B is expected to generate net cash flows of $61,000 per vear over the next seven years. Management requites an 10% rate of return on its Investments (PV of \$1. FV of \$1, PVA of $1, and FVA (Use approprlate factor(s) from the tables provlded.) Required: 1. Compute each project's net present value. 2. Compute each project's profitability index 3. If the company can choose only one project which should it choose, based on profitablity Index? Compute each project's net present value. (Do not round intermediate calculations. Round your present value factor to 4 decimals and your final answers to the nearest whole dollar.) Compute each project's profitability index. (Do not round intermediate values. Enter your answers rounded to the neareit whole dollace) If the company can choose only one project, which should it choose, based on profitability index

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