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Blue Spruce Company has hired a consultant to propose a way to increase the company's revenues. The consultant has evaluated two mutually exclusive projects with the following information provided for each: Capital investment Annual cash flows Estimated useful life Project Turtle $1,115,000 182,000 10 years Project Snake $635,000 107,000 10 years Blue Spruce Company uses a discount rate of 9% to evaluate both projects. (a) Calculate the net present value of both projects. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Net present value $ Project Turtle $ Project Snake Blue Spruce Company has hired a consultant to propose a way to increase the company's revenues. The consultant has evaluated two mutually exclusive projects with the following information provided for each: Capital investment Annual cash flows Estimated useful life Project Turtle $1,115,000 182,000 10 years Project Snake $635,000 107,000 10 years Blue Spruce Company uses a discount rate of 9% to evaluate both projects. (a) Calculate the net present value of both projects. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Net present value $ Project Turtle $ Project Snake
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Answer 1 Project Turtle Project Snake Annual Cash inflows 180000 105000 x Annuit... View the full answer
Related Book For
Essentials of Managerial Finance
ISBN: 978-0324422702
14th edition
Authors: Scott Besley, Eugene F. Brigham
Posted Date:
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