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Typed answers are greatly appreciated! Question 1 Bill Zimmerman is evaluating two new business opportunities. Each of the opportunities shown below has a ten-year life.
Typed answers are greatly appreciated!
Question 1 Bill Zimmerman is evaluating two new business opportunities. Each of the opportunities shown below has a ten-year life. Bill uses a 12% discount rate. Option 1 $72,000 $29,000 $4,980 Option 2 $83,610 $31,380 Equipment purchase and installation Annual cash flow Equipment overhaul in year 3 Equipment overhaul in year 5 $6,390 Click here to view the factor table. XYour answer is incorrect. Try again. Calculate the net present value of the two opportunities. (Round present value factor calculations to 4 decimal places, e.g. 1.2514 and the final answers to 0 decima places, e.g. 59,991.) Option 1 Option 2 91856 93694 Net present value $ LINK TO TEXT LINK TO VIDEO VIDEO: SIMILAR EXERCISE x Your answer is incorrect. Try again. Calculate the profitability index of the two opportunities. (Round answers to 2 decimal places, e.g. 15.25.) Option 1 Option 2 2.28 2.12 Profitability IndexStep by Step Solution
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