Question: Just need help with these two problems im having trouble with. Will give thumbs up rating immediately. Thanks! Question 5 of 12 -74 = The


Question 5 of 12 -74 = The Bramble Company is planning to purchase $ 487,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment: Year 1 Projected Cash Flows $ 207.000 132.000 2 3 109.000 51.700 5 61.200 6 44.400 7 46,300 Total $ 651,600 Click here to view the factor table. Calculate the net present value of the proposed equipment purchase. Bramble uses a 6% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, eg. 58,971) Net present value Matthew Young is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Matthew uses a 12% discount rate Option 1 $ 70,200 Option 2 $82,000 $29.700 $ 27,300 Equipment purchase and installation Annual cash flow Equipment overhaul in year 6 Equipment overhaul in year 8 $ 4.700 $ 6,050 Click here to view the factor table Calculate the net present value of the two opportunities. (Round present value factor calculations to 4 dec the final answers to 0 decimal places, eg. 59,991.) Option 1 Option 2 123596 $ 128942 Net present value eTextbook and Media Attempts: 10 Save for Later (b) * Your answer is incorrect. Calculate the profitability index of the two opportunities. (Round answers to 2 decimal places, e.g. 15.25.) Option 1 Option 2 Profitability Index 2.76
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