Question 8 of 15

Question 8 of 15 View Policies Current Attempt in Progress - / 6.5 Pharoah Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $494,000, has an expected useful life of 12 years and a salvage value of zero. end is expected to increase net annual cash by 368.400. Project a will cost "31.000, has an expected useful life of 12 years and salvage value of zero, and is expected to increase net annual cash flows by 347000. A discount rate of 7% is appropriate for both projects. Click here to view the factor table. Compute the net present va lue and profitability index of each project (If the net value is r.tive, u eiffr a negative stn preceding the -45 Or mrentheses (45). Round present value answers to O decirml places, e.g. 125 and mofitability index answers to 2 places, e.g. 15.25. For calculatim 5 decimal places as displayed in the factor table provided.) Net present value - Project A Profitability index - Project A Net present value - Project 8 Profitability index - Project B Which project should be accepted based on Net Present Value? v should be accepted. Which project should be accepted based on profitability index? v should be accepted.