Sandhill Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $506,000, has an expected useful life of 12 years and a salvage value of zero, and is expected to increase net annual cash flows by $69,900. Project B will cost $314.000, has an expected useful life of 12 years and a salvage value of zero, and is expected to increase net annual cash flows by $45.200. A discount rate of 7% is appropriate for both projects. Click here to view the factor table.

Compute the net present value and profitability index of each project.

Sandhill Compary is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $506,000, has an expected useful life of 12 years and a salvage value of zero, and is expected to increase net annual cash flows by 569,900 . Project B will cost $314,000, has an expected useful life of 12 years and a salvage value of rero, and is expected to increase not annual cash flows by \$45.200. A discount rate of 7N is appropriate for both projects. Click here to view the factor table. Compute the net present value and proftability index of exch project. (Or the net present value is negative use either a negative sign preceding the number eg 45 or porentheses eg (45). Round present value answers to 0 decimal places es. 125 and profitobility index answers to 2 decimal ploces, es. 15.25. For colculation purposes, use 5 decimal ploces as displayed in the foctor table provided.) Netpresent value - Project A $ Profitabilityindex-Project A Net present value-Project $ Proftability indox Project B