Dwight Donovan, the president of Donovan 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 four 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 $140,000 and for Project B are $49,000. The annual expected cash inflows are $44,037 for Project A and $15,458 for Project B. Both investments are expected to provide cash flow benefits for the next four years. Zachary Enterprises cost of capital is 8 percent. (PV of $1 and PVA of $1)

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

B. Compute the approx. internal rate of return of each project. Which one should be adopted based on the internal rate of return approach?