Question: Question 8 of 15 -/0.5 E View Policies Current Attempt in Progress Crane Company is considering two different, mutually exclusive capital expenditure proposals. Project A
Question 8 of 15 -/0.5 E View Policies Current Attempt in Progress Crane Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $ 450,000, has an expected useful life of 11 years and a salvage value of zero, and is expected to increase net annual cash flows by $ 73,500. Project B will cost $274.000, has an expected useful life of 11 years and a salvage value of zero, and is expected to increase net annual cash flows by $ 46,800. A discount rate of 9% is appropriate for both projects. Click here to view the factor table Compute the niet present value and profitability index of each project if the net present value is negative, use either a negative sign preceding the number es - 45 or parentheses es (45). Round present value answers to decimal places es 125 and profitability index answers to 2 decimal places, es. 15.25. For calculation 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? should be accepted Which project should be accepted based on profitability Index should be accepted
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