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Sheffield company is fonsidering two different mutually exculsive captial expenditure proposal s. Projext A will cost $554,000, has an expected useful life of 14 years
Sheffield company is fonsidering two different mutually exculsive captial expenditure proposal s. Projext A will cost $554,000, has an expected useful life of 14 years and salvage value of zero and is expect to increase net annual cash glow by $74,000. Project B will cost $386,000, has an expected useful life of 14 years and a salvage value of zero and is expedted to incresee net annual cash flow by $53,000. A discount rate of 8% is appropriate for boty projects
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