12 Exercise 26-14 (Algo) Net present value of an annuity LO P3 1.56 points Information for two alternative projects involving machinery Investments follows. Project 1 requires an Initial Investment of $131,600. Project 2 requires an initial Investment of $98,100. Assume the company requires a 10% rate of return on its Investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project 1 $ 106, 200 Project 2 $ 83,400 eBook Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income 000 70,850 18,800 8, 720 $ 7,830 34,880 19, 620 21,800 $ 7,100 Hint Print Compute the net present value of each potential Investment Use 7 years for Project 1 and 5 years for Project 2. Assume cash flows occur evenly throughout each year. (Negative net present values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar.) References Project 1 Chart values are based on: Select Chart Amount PV Factor Present Value = Net present value Project 2 Chart values are based on: n = Select Chart Amount x PV Factor Present Value Net present value