Beacon company is considering two different mutually

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Beacon Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $455,089, has an expected useful life of 13 years, a salvage value of zero, and is expected to increase net annual cash flows by $71,900. Project B will cost $295,434, has an expected useful life of 13 years, a salvage value of zero, and is expected to increase net annual cash flows by $48,800. A discount rate of 10% 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: EM13569384

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