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Solve for NPV and should Oriole accept? Oriole Industries is expanding its product line and its production capacity. The costs and expected cash flows of

Solve for NPV and should Oriole accept? image text in transcribed
Oriole Industries is expanding its product line and its production capacity. The costs and expected cash flows of the two independent projects are given in the following table. The firm uses a discount rate of 15.36 percent for such projects. Year Product Line Expansion un W NO -$2,302,800 515,700 876,700 876,700 876,700 876,700 Production Capacity Expansion -$7,278,600 2,610,600 2,610,600 2,610,600 2,651,000 2,651,000 4 a. What are the NPVs of the two projects? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.) $ NPV of product line expansion is NPV of production capacity expansion is $ b. Should both projects be accepted? or either? or neither? Explain your reasoning. Oriole should accept

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