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Say Project A $(176,325) Project B $(143,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 41,
Say Project A $(176,325) Project B $(143,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 41, eee 45,000 22,295 84,400 9900 25,00 49,000 5.ee 71,00 25,000 a. For each alternative project compute the net present value. b. For each alternative project compute the profitability Index. If the company can only select one project, which should it choose? Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the net present value. Project A Initial Investment S 176,325 Chart Values are Based on TE 6 % Year PV Factor Present Value Cash Inflow X 41.000 x 1 2 3 4 5 Project B S 143.980 Initial Investment Year Cash Inflow x PV Factor Present Value 1 2 3 4 5 Required B >
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