Alternative Capital Investments

Net Cash Flow

Present Value of $$1$ at Compound Interest

Present Value of an Annuity of $$1$ at Compound Interest

Required:

If required, use the minus sign to indicate a negative net present value.

For each project, compute the net present value. Use the present value of an annuity of $$1$ table above. Ignore the unequal lives of the projects. If required, round to the nearest dollar.

Office Expansion

Server Upgrade

Less amount to be invested

q$.$

$4$

Net present value

Office Expansion

Server Upgrade

Present value of net cash flow total

$!$

Less amount to be invested

$$

Net present value

$

s