Question: Bramble Compary is considering two different, mutually exclusive capital expenditure proposals. Project A will cost 5401,000 , has an expected uscful life of 11 years
Bramble Compary is considering two different, mutually exclusive capital expenditure proposals. Project A will cost 5401,000 , has an expected uscful life of 11 years and a salvage value of 2 ero, and is expected to increase net annual cach flows by $70,000, Project B will cost$260,000, has an expected useful life of 11 years and a salvage value of zero, and is expected to increase net annual cash flows by $48,000. A discount rate of 10% is appropriate for both projects. Click here to view the factor table. Calculate the net present value and profitability index of each project. Of the net present value is negative, use either a negotive sign preceding the number es. -45 or parentheses eg. (45). Round present value answers to 0 decimal ploces, es 125 and profitability index answers to 2 decimal places, es 15.52. For calculation purposes, use 5 decimal ploces as displayed in the foctor toble provided, es. 1.25124.) Which project should be accepted based on net present value? Which project should be accepted based on profitabisity index
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