Salvage value zero and expected annual net cash flow

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Reference no: EM13774520

My company is considering two different proposals. Project A, will cost $400,000, has a expected life of 10 years, a salvage value of zero, and expected increase in annual net cash flow of $70,000. Project B is $280,000, has expected life of 10 years, salvage value zero, and expected annual net cash flow is $50,000. A discount rate of 9% for both. Compute the net present value of each and which should be accepted?

Reference no: EM13774520

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