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Waterway Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $445.000has an expected useful life of 14 years and a
Waterway Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $445.000has an expected useful life of 14 years and a salvage value of zero, and is expected to increase net annual cash flows by $68,000. Project B will cost $325,000, has an expected useful life of zero and is expected useful life of 14 years and a salvage value of zero and is expected to increase net annual cash flows by $51,000. A discount rate of 10% is appropriate for both projects what is net present value for project A and B what is profitability index for project A and project B
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