$1$b$.$ Compute the net present value for each investment. Use the present value of

$$1$ table above. If required, round to the nearest dollar. If required, use the

minus sign to indicate a negative net present value.

Present value of net cash flow

Amount to be invested

Net present value

Prepare a brief report for the capital investment committee, advising it on the

relative merits of the two investments.

The robotic assembler has a

net present value because cash flows

occur

in time compared to the warehouse. Thus, if only one of the two

projects can be accepted, the

would be the more attractive.