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could you help me figure out how to solve this? i want to see the numbers you use in the formula so i understand. please

could you help me figure out how to solve this? i want to see the numbers you use in the formula so i understand. please ?

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Part Five APPLY THE CONCEPTS: Net present value and Present value Index Underwood Industries is looking to invest in Project A or Project B. The data surrounding each project is provided below. Underwood's cost of capital is 11%. Project A Project B This project requires an initial investment of This project requires an initial investment of $172,500. The project will have a life of 6 $132,500. The project will have a life of 4 years. Annual revenues associated with the years. Annual revenues associated with the project will be $130,000 and expenses project will be $115,000 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 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 Compound Interest. 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 $ 401,945 55,000 X Amount to be invested 172,500 V 132,500 Net present value $ 229,445 V Present value index: Project A Project B Based upon net present value, which project has the more favorable profit prospects? Project A - V Check My Work Nex

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