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Shamrock Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $485.000, has an expected useful life of 12 years and

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Shamrock Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $485.000, has an expected useful life of 12 years and a salvage value of zero, and is expected to increase net annual cash flows by 575,000 . Project B will cost $272,000, has an expected useful life of 12 years and a salvage value af zero, and is expected to increase net annual cash flows by $45,000. A discount rate of 9% is appropriate for both projects. Click here to view the factor table. Calculate the net present value and profitability index of each project. (lf the net present value is negative, wse elther a negative sign preceding the number es. 45 or parentheses eg. (45). Round present value answers to 0 decimal ploces, es. 125 and profitability index answers to 2 decimal ploces eg. 15.52. For colculation purposes, use 5 decimal ploces as disployed in the foctor table provided es. 1.25124

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