Swifty Corporation has decided to invest in renewable energy sources to meet part of its energy needs for production. It i considering solar power versus wind power. After considering cost savings as well as incremental revenues from selling excess electricity into the power grid, it has determined the following. Present value of annual cash flows Initial investment Net present value $ Profitability index Solar $54,740 $39,100 Determine the net present value and profitability index of each project. (If the net present value is negative, use either a negat sign preceding the number eg -45 or parentheses eg (45). Round present value answers to O decimal places, e.. 125 and profitabili index answers to 2 decimal places, e.g. 15.25.) Solar Wind $129,828 $104,700 Wind
Swifty Corporation has decided to invest in renewable energy sources to meet part of its energy needs for production. It i considering solar power versus wind power. After considering cost savings as well as incremental revenues from selling excess electricity into the power grid, it has determined the following. Present value of annual cash flows Initial investment Net present value $ Profitability index Solar $54,740 $39,100 Determine the net present value and profitability index of each project. (If the net present value is negative, use either a negat sign preceding the number eg -45 or parentheses eg (45). Round present value answers to O decimal places, e.. 125 and profitabili index answers to 2 decimal places, e.g. 15.25.) Solar Wind $129,828 $104,700 Wind
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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