APPLY THE CONCEPTS: Net present value and Present value index Rydell Corporation is looking to invest in Project A or Project B. The data surrounding each project is provided below. Rydell's cost of capital is 8 %. Project A Project B This project requires an initial investment of $165,000. The project will have a life of 8 This project requires an initial investment of $140,000. The project will have a life of 7 years. Annual revenues associated with the project will be $115,000 and expenses associated with the project will be $60,000 years. Annual revenues associated with the project will be $130,000 and expenses associated with the project will be $35,000. Calculate the net present value and the present value index for each project using the present value tables provided below. Present Value of $1 (a single sum) at Compound Interest. Present Value of an Annuity of $1 at Com rest nc Note: Use a minus sign to indicate a negative NPV If an amount is zero, enter 0 Enter the present value index to 2 decimals. Project A Project B Total present value of net cash flow Amount to be invested Net present value Present value index: Project A Project B