a. Determine the net present value of Project 1 over a 3-year life with residual value, assuming a minimum rate of return of 6%. If required, round to the nearest dollar. $ X b. Which project provides the greatest net present value? Project 1 requires an original investment of $101,500. The project will yield cash flows of $22,000 per year for 5 years. Project 2 has a computed net present value of $27,600 over a 3year life. Project 1 could be sold at the end of 3 years for a price of $81,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. Present Value of an Annuity of $1 at Compound Interest a. Determine the net present value of Project 1 over a 3-year life with residual value, assuming a minimum rate of return of 6%. If required, round to the nearest dollar. $ X b. Which project provides the greatest net present value? Project 1 requires an original investment of $101,500. The project will yield cash flows of $22,000 per year for 5 years. Project 2 has a computed net present value of $27,600 over a 3year life. Project 1 could be sold at the end of 3 years for a price of $81,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. Present Value of an Annuity of $1 at Compound Interest