APPLY THE CONCEPTS: Net present value and Present value index Sutherland Engineering is looking to invest in Project A or Project B. The data surrounding each project is provided below. Sutherland's cost of capital is 11% Project A Project B This project requires an inial investment This project requires an initial investment of $170,000. The project will have a life of of $140,000. The project ve a life of 6 years. Annual revenues associated with 4 the project will be $130,000 and expenses associated with the project will associated with the project will be be $35,000 Annual revenues associated with years. the project will be $115,000 and expenses $60,000 Calculate the net present value and the present value index for each project using the present value tables provided belovw Present Value of $1 (a single sum) at Compound Interest. Present Value of an Annuity of $1 at Compound Interest. Note: Use a minus sign to indicat If an amount is zero, enter "O" Enter the present value index to 2 decimals. a negative NPV 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 Based upon net present value, which project has the more favorable profit prospects? ProjectA V Based upon the present value index, which project is ranked higher? Both are favorable X