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Sandhill Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $ 5 4 2 , 0 0 0 , has
Sandhill Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $ has an expected useful life of years and a salvage value of zero, and is expected to increase net annual cash flows by $ Project will cost $ has an expected useful life of years and a salvage value of zero, and is expected to increase net annual cash flows by $ A discount rate of is appropriate for both projects. Click here to view the factor table.
Compute the net present value and profitability index of each project. If the net present value is negative, use either a negative sign preceding the number eg or parentheses eg Round present value answers to decimal places, eg and profitability index answers to decimal places, eg For calculation purposes, use decimal places as displayed in the factor table provided.
Net present valueProject A $
Profitability index Project A
Net present valueProject B $
Profitability index Project B
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