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 Required
Net Present Value Analysis Hermson Company must evaluate two capital expenditure proposals. Hermson's hurdle rate is 12%. Data for the two proposals follow Required vestment Annual after-tax cash inflows Proposal Proposal x Y $630,000 $630,000 148.500) After tax cash inflows at the end of years 365, and 12 445,500 12 years 12 years Life of project 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 Proposal Proposal Y Net present value Initial outflows 01 0 PV of future cash flows 0 0 Net present value 05 Which proposal is more attractive? Please answer all parts of the question.
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