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Calculate the net present value and the present value index for each project using the present value tables provided below. Sutheriand Corp. is looking to

Calculate thenet present valueand thepresent value indexfor each project using the present value tables provided below.

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Sutheriand Corp. is looking to invest in Project A or Project B. The data surrounding each project is provided below. Sutherland's cost of capital is 8%. mom mom This project requires an initial investment of This project requires an initial investment of $172,500. The project will have a life of 8 $130,000. The project will have a life of 7 years. Annual revenues associated with the years. Annual revenues associated with the project will be $130,000 and expenses project will be $113,000 and expenses associated with the project will be $35,000. associated with the project will be $60,000. Calculate the net present value and the present vaiue 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 Compound Interest. Note: . Use a minus sign to indicate a negative NW. . 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 ow 5.: E Amount to be invested 172,5oo J 130,ooo J

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