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View Policies Current Attempt in Progress Sandhill Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $542,000, has an
View Policies Current Attempt in Progress Sandhill Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $542,000, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $74,500. Project B will cost $338.000, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $48,000. A discount rate of 7% is appropriate for both projects. Click here to view PV table. Compute the net present value and profitability index of each project. (If the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). Round present value answers to O decimal places, eg. 125 and profitability index answers to 2 decimal places, eg. 15.25. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Net present value-Project A $ Profitability index-Project A Net present value-Project B $ Profitability index-Project B
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