Question: Net Present Value Analysis Hermson Company must evaluate two capital expenditure proposals. Hermson's hurdle rate is 12%. Data for the two proposals follow Proposal

Net Present Value Analysis Hermson Company must evaluate two capital expenditure 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 Proposal Proposal Required investment Annual after d cash inflows Aher tax cash inflows at the end of years 365 and 12 Life of project $490,000 $400,000 115.500 346,500 12 years 12 years 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 Net present value Intial outflows Proposal X Proposal Y 05 Pr of Mure cash Net present value 01 Which proposal is more attractive?

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