Question

Crane 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. Solar Wind Present value of annual cash flows $55,695 $135,255 Initial investment $39,500 $106,500 Determine the net present value and profitability index of each project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to 0 decimal places, e.g. 125 and profitability index answers to 2 decimal places, e.g. 15.25.) Net present value Profitability index Solar $ Wind $

          Crane 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.
Solar
Wind
Present value of annual cash flows $55,695 $135,255
Initial investment
$39,500 $106,500
Determine the net present value and profitability index of each project. (If the net present value is negative, use either a negative
sign preceding the number eg -45 or parentheses eg (45). Round present value answers to 0 decimal places, e.g. 125 and
profitability index answers to 2 decimal places, e.g. 15.25.)
Net present value
Profitability index
Solar
$
Wind
$

Crane 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.
Solar
Wind
Present value of annual cash flows 55,695135,255
Initial investment
39,500106,500
Determine the net present value and profitability index of each project. (If the net present value is negative, use either a negative
sign preceding the number eg -45 or parentheses eg (45). Round present value answers to 0 decimal places, e.g. 125 and
profitability index answers to 2 decimal places, e.g. 15.25.)
Net present value
Profitability index
Solar
Wind

Added by Darius P.

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