Question: Brief Exercise 26-10 expected to increase net annual cash flows by $74,100. Project B will cost $341,779, has an expected useful life of 12 years,

 Brief Exercise 26-10 expected to increase net annual cash flows by

Brief Exercise 26-10 expected to increase net annual cash flows by $74,100. Project B will cost $341,779, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash fows by $50,700. A discount rate of 8% is appropriate for both projects Compute the net present value and profitability index of each project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to 0 decimal places, e.g. 125 and profitability index answers to 2 decimal places, e.g. 15.25. For calcuation 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 B Profitability index- Project B Which project should be accepted based on Net Present Value? Project A +should be accepted. Which project should be accepted based on profitability index? Project B should be accepted LINK TO TEXT Question Attempts: 0 of 3 used SAVE FOR LATER SUOMET

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