BE 11-5 Net present value-unequal lives Project 1 requires an original investment of $125,000. The project will yield cash flows of $50,000 per year for 10 years. Project 2 has a calculated net present value of $135,000 over an eight-year life. Project 1 could be sold at the end of eight years for a price of $8,000. (A) Determine the net present value of Project 1 over an eight-year life, with residual value, assuming a minimum rate of return of 12%. (B) Which project provides the greatest net present value? Obj. 4