(10 points - 5 each) Grayson Company is considering two new projects, each requiring an equipment investment of $72,000. Each project will last for three years and produce the following annual net income. Year TIP TOP 1 $ 8,000 2 9,000 $ 9,000 9,000 9,000 $27,000 3 14,000 $31,000 The equipment will have no salvage value at the end of its three-year life. Grayson Company uses straight-line depreciation. Grayson requires a minimum rate of return of 12%. Present value data are as follows: Present Value of 1 Present Value of an Annuity of 1 Period 12% Period 12% 1 .893 1 .893 2 .797 2 1.690 3 .712 3 2.402 Instructions Compute the net present value of each project