Dwight Donovan, the president of Baird Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of five years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $116,000 and for Project B are $37,000. The annual expected cash inflows are $29,823 for Project A and $10,264 for Project B. Both investments are expected to provide cash flow benefits for the next five years. Baird Enterprises desired rate of return is 4 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required

1. Compute the net present value of each project. Which project should be adopted based on the net present value approach?