. What is the net present value $ of project A? 2. what is the profitability index for project A? 3. What is the net present value $ of project B?
Jonczyk Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $461,000, has an expected useful life of 11 years and a salvage value of zero, and is expected to increase net annual cash flows by $72,000. Project B will cost $271,000, has an expected useful life of 11 years and a salvage value of zero, and is expected to increase net annual cash flows by $45,000. A discount rate of 8% is appropriate for both projects.
1. What is the
2. what is the profitability index for project A?
3. What is the net present value $ of project B?
4. what is the profitability index for project B?
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