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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Which energy source should it choose? The company should choose V energy source.
Transcribed Image Text:Which energy source should it choose? The company should choose V energy source.
Swifty Corporation has decided to invest in renewable energy sources to meet part of its energy needs for production. It is 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 profitabilit index answers to 2 decimal places, e.g. 15.25.) Solar Wind $129,828 $104,700 Wind
Transcribed Image Text:Swifty Corporation has decided to invest in renewable energy sources to meet part of its energy needs for production. It is 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 profitabilit index answers to 2 decimal places, e.g. 15.25.) Solar Wind $129,828 $104,700 Wind
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