Orkin company is considering two different mutually

Reference no: EM13569387

Orkin Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $489,272, has an expected useful life of 13 years, a salvage value of zero, and is expected to increase net annual cash flows by $68,600. Project B will cost $337,425, has an expected useful life of 13 years, a salvage value of zero, and is expected to increase net annual cash flows by $49,200. A discount rate of 8% is appropriate for both projects. Compute the net present value and profitability index of each project. Which project should be accepted? (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round computations and final answer for present value to 0 decimal places, e.g. 125 and profitability index to 2 decimal places, e.g. 10.50. Round computations for Discount Factor to 5 decimal places. )

Net present value - Project A $ _________?
Profitability index - Project A _________?
Net present value - Project B $ ________?
Profitability index - Project B _________?

Reference no: EM13569387

Questions Cloud

What is the total amount of traceable fixed manufacturing : nbspfoundational 10-1cane company manufactures two products called alpha and beta that sell for 120 and 80

Snow cleaners inc had net income of 494592 for its fiscal : snow cleaners inc had net income of 494592 for its fiscal year ended november 30 2012. during the year the company had

Justify your investigation by evaluating it in terms of its : justify your investigation by evaluating it in terms of its effectiveness and explain how it could be further improved.

Stangle company manufactures ties when 28000 ties are : stangle company manufactures ties. when 28000 ties are produced the costs per unit are direct materials 0.60 direct

Orkin company is considering two different mutually : orkin company is considering two different mutually exclusive capital expenditure proposals. project a will cost 489272

Metro city needs 200000000 to build a light-rail system the : metro city needs 200000000 to build a light-rail system. the citys financial advisors believe that it will be able to

A financial adviser claims that a particular stock earned : a financial adviser claims that a particular stock earned a total return of 10 last year. during the year the stock

Beacon company is considering two different mutually : beacon company is considering two different mutually exclusive capital expenditure proposals. project a will cost

What do the characters say with their dress gestures facial : what do the characters say with their dress gestures facial expressions and the like? do the same with a television

User Account

All Pages