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Rowan Compony is censidering two alternativo iovestment projects. Each requires a $25t,000 initai investment. Project A is expected to generate net cash flows of $6t000

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Rowan Compony is censidering two alternativo iovestment projects. Each requires a $25t,000 initai investment. Project A is expected to generate net cash flows of $6t000 per yeor over the next six years. Project 8 is expected to generate net cash flows of $51.000 poe year over the next seven yeas Management requires an 7 , pate of retum on iss imvestments. (PV of S1. EV of S1; BVA of S1, and PVA of 51) (Use apprepriate factorts) from the tables provided) Requlred: 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 profitability indox? Complete this question by entering your answers in the tabs below. Combute each project 's net present valye. (Do not rowid intermediate cakblations. Round vour present value foctoc to 4 deombls and your final answers to the nesorest ahele dotac)

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