ABC Company is evaluating cash flow for two project proposals. Both require a $500,000 initial investment and generate the following cash flow. The company uses a 5.50% discount rate.

Calculate the cumulative cash flow for project A: $? (Round to nearest dollar)

Calculate the net present value for project A: $? (Round to nearest dollar)

Calculate the cumulative cash flow for project B: $? (Round to nearest dollar)

Calculate the net present value for project B: $? (Round to nearest dollar)

Which project should ABC Company select?:

A. Project A

B. Project B

Year Project A $40,000.00 Project B $100,000.00 $48,000.00 $100,000.00 $58,000.00 $100,000.00 $69,000.00 $100,000.00 $83,000.00 $100,000.00 $100,000.00 $125,000.00 $119,000.00 $125,000.00 $125,000.00 $143,000.00 8 9 $172,000.00 $125,000.00 10 $205,000.00 $125,000.00 1234567