Question: 5. Messer, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one
5. Messer, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $35,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $51,000 in year three, and $15,000 in year four. The firm's required rate of return for these projects is 10%. The net present value for Project A is______________. (Show your work.)
6. Messer, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $35,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $51,000 in year three, and $15,000 in year four. Messer, Inc.'s required rate of return for these projects is 10%. The profitability index for Project B is__________________. (Show your work.)
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