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