hermon compant must evaluate two capital expenditure proposals. hermons hurdle rate is 12%. data for...
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hermon compant must evaluate two capital expenditure proposals. hermons hurdle rate is 12%. data for the two proposals follow.
using net present value analysis, which proposal is the more attractive? Do not use negative signs with your answers. Round PV answers to the nearest whole number Use rounded answers for subsequent calculation ofnet present value.
Required investment Annual after-tax cash inflows After-tax cash inflows at the end of years 3, 6, 9, and 12 Life of project Proposal X Proposal Y $490,000 $490,000 115,500 346,500 12 years 12 years Using net present value analysis, which proposal is the more attractive? Do not use negative signs with your answers. Round PV answers to the Proposal X Proposal Y $ 0 $ 0 Net present value Initial outflows PV of future cash flows Net present value 0 0 $ 0 $ 0
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