Question: Net Present Value Analysis Hermson Company must evaluate two capital expenditure proposals. Hermson's hurdle rate is 1 2 % . Data for the two proposals

Net Present Value Analysis

Hermson Company must evaluate two capital expenditure proposals. Hermson's hurdle rate is

12 % .

Data for the two proposals follow.

Using net present value analysis, which proposal is the more attractive?

Do not use negative signs with your answers. Round PV answers to the nearest whole number. Use rounded answers for subsequent calculation of net present value.

Which proposal is more attractive?

Net Present Value Analysis Hermson Company must evaluate two capital expenditure

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