Activity 3 - Comparing and Prioritizing Multiple Projects Krueger Inc. has a number of potential capital investments projects. Due to the varying investment amounts and time horizons, selecting the best project has been difficult. Project 1: Updating the Machines in the Manufacturing Facility .Initial investment in new machines $10,000,000 Additional Cash flow generation of $1,950,000 per year New machines have a useful life to 8 years and a salvage value of $1,200,000 Major maintenance is need on the machine in Year 5, $500,000 Project 2: Purchase an ERP Software System (Enterprise Resource Planning System) Initial Investment in software $2,000,000 Initial Installation and training $2,000,000 Annual maintenance costs are $300,000 Cost (cash) savings from the software before maintenance cost, $1,000,000. Useful life of the software- 10 years with no salvage value Project 3: Purchase a Patent for a New Product Patent costs $7,500,000 . Amortized over 10 years, zero salvage value 000 additional annual net income Estimated $100,000 in patent defense fees each year(assume this is an expense) Required: I. Using a discount rate of 10%, cal late the NPy of your project