Question: Brief Exercise 12-5 Mcknight Company is considering two different, mutually exclusive capital expenditure proposals Project A will cost $542,000, has an expected useful life of
Brief Exercise 12-5 Mcknight 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 nero, and is expected to increase net annual cash flows by 574,500. Project will cost $18,000, has an expected us e of 12 years, a salvage value of nero, and is expected to increase met annual cash nows by $48,000. A discount rate of 7% is appropriate for both projects. Click here to view table Compute the net present value and profitability index of each project. If the net procent value is negative use thera negative in preceding the number -5 or parentheses og (45). Round present value answers to decimal places, ed. 125 and profitabindex answers to 2 decimal places. 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 Profily Index - Project Which project should be accepted based on Net Present Value> should be accepted Which project should be accepted based on profitability index should be accepted Click if you would like to show Work for this question On Show Work
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