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Question 5 (4 points) Mcknight Company is considering two different, mutually exclusive capital expenditure proposals....

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Question 5 (4 points) Mcknight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $530,000, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $73,000. A discount rate of 7% is appropriate for all projects. Hint: 7% discount factor is 7.94269. For Project A, compute the net present value (NPV) and profitability index (PI). a) NPV is 59.816 and Pl is 1.09 Ob) NPV is $-49816 and Pl is 1.09 Oc) NPV and PI cannot be determined based on information provided. d) NPV is $49,816 and Pl is 1.09

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