=+The committee has selected a rate of 20% for purposes of net present value analysis.

It also estimates that the residual value at the end of each restaurant’s useful life is $0, but at the end of the fourth year, Site A’s residual value would be $290,000.

Instructions 1. For each site, compute the net present value. Use the present value of an annuity of

$1 table appearing in this chapter. (Ignore the unequal lives of the projects.)