Bramble Company is considering two new projects, each requiring an equipment investment of $99,000 three...

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Accounting

Bramble Company is considering two new projects, each requiring an equipment investment of $99,000 three years and produce the following cash flows: Year 1 2 3 Cool $40,500 45,500 50,500 136,500 Period 1 Present Value of 1 2 The equipment will have no salvage value at the end of its three-year life. Bramble Company uses straight-line depreciation and requires a minimum rate of return of 12%. Present value data are as follows: 3 1 (a) $44,500 44,500 2 Hot 3 $133,500 44,500 12% Present Value of an Annuity of 1 Period 0.89286 0.79719 0.71178 12% Click here to view PV tables. 0.89286 1.69005 2.40183 Compute the net present value of each project. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answers to 0 decimal places, eg. 5,275) Project Cool Net present value Project Hot
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Aramble Company is condidering two new projects, each requiring an equipment investment of thinceyears and produce the followine cash fiow: Present viue date are ab follows. Cideretowervabes (4)

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