Dwight Donovan, the president of Fanning Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project Als to purchase a machine that will enable factory automation, the machine is expected to have a useful life of three 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 $119,000 and for Project Bare $36,000. The annual expected cash inflows are $56,492 for Project A and $14,989 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Fanning Enterprises desired rate of return is 8 percent. (PV of $1 and PVA 051) (Use appropriate factor(s) from the tables provided.) Required a. Compute the net present value of each project. Which project should be adopted based on the net present value approach? b. Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each project. Which project should be adopted based on the net present value approach? (Round your final answers to 2 decimal places.) Net Present Value Project A Project B Which project should be adopted? Ronald Required B > Complete this question by entering your answers in the tabs below. Required A Required B Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach? Internal Rato of Retum % Project A Project B Which project should be adopted? 9% TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 4% 5% 6% 1 79% 0.961538 0.952381 0.943396 0.934579 2 1.886095 1.859410 1.833393 3 1.808018 2.775091 2.723248 2.673012 2.624316 4 3.629895 3.545951 3.465106 5 4.451822 3.387211 4.329477 4.212364 4.100192 6 5.242137 5.075692 4.917324 4.766540 7 6.002055 5.786373 5.582381 5.389289 6.732745 6.463213 6.209794 5.971299 9 7.435332 7.107822 6.801692 6.515232 10 8.110896 7.721735 7.360087 7.023582 11 8.760477 8.306414 7.886875 7.498674 12 9.385074 8.863252 8.383844 7.942686 13 9.985648 9.393573 8.852683 8.357651 14 10.563123 9.898641 9.294984 8.745468 15 11.118387 10.379658 9.712249 9.107914 16 11.652296 10.837770 10.105895 9.446649 17 12.165669 11.274066 10.477260 9.763223 18 12.659297 11.689587 10.827603 10.059087 19 13.133939 12.085321 11.158116 10.335595 20 13.590326 12.462210 11.469921 10.594014 8% 0.925926 1.783265 2.577097 3,312127 3.992710 4.622880 5 206370 5.746639 6.246888 6.710081 7.138964 7.536078 7.903776 B.244237 8.559-479 8.851369 9.121638 9.371887 9.603599 9.818147 10% 0.917431 0.909091 1.759111 1.735537 2.531295 2.486852 3.239720 3.169865 3.889651 3.790787 4.485919 4.355261 5.032953 4.868419 S.534819 5.334926 5.995247 5.759024 6.417658 6.144567 6.805191 6.495061 7.160225 6.813692 7.486904 7.103356 7.786150 7.366687 B.060688 7.606089 8.312558 7.823709 8.543631 8.021553 8.755625 8.201412 8.905115 8.364920 9.128546 8.513564 12% 0.892857 1.690051 2.401831 3.037349 3.604776 4.111407 4.563752 4.967640 5.328250 5.650223 5.937699 6.194374 6.423548 6,628168 6.810864 6.973986 7.119630 7.249670 7.365777 7.469444 14% 0.877193 1.646661 2.321632 2.913712 3.433081 3.888668 4.288305 4.638864 4.946372 5.216116 5.452733 5.660292 5.842362 6.002072 6.142168 6.265060 6.372859 6.467420 6.550369 6.623131 16% 20% 0.862069 0.833333 1.605232 1.527778 2.245890 2.106481 2.798181 2.58873 3.274294 2.990612 3.684736 3.325510 4.038565 3,604592 4.343591 3.837160 4,606544 4.030967 4.833227 4.192472 5.028644 4.327060 5.197107 4.439217 5.342334 4.532681 5.467529 4.610567 5.575456 4.675473 5.668497 4.729561 5.748704 4.774634 5.817848 4.812195 5.877455 4.843496 5.928841 4.869580 TABLE 1 PRESENT VALUE OF $1 n 4% 5% 6% 7% 8% 1 9% 10% 12% 14% 16% 0.961538 0.952381 0.943396 0.934579 0.925926 0.917431 0.909091 0.892857 0.877193 0.862069 0.833333 20% 2 0.924556 0.907029 0.889996 0.873439 0.857339 0.841680 0,826446 0.797194 0.769468 0.743163 0.694444 3 0.888996 0.863838 0.839619 0.816298 0.793832 0.772183 0.751315 0.711780 0.674972 0.640658 0.578704 4 0.854804 0.822702 0.792094 0.762895 0.735030 0.708425 0.683013 0.635518 0.592080 0.552291 0.482253 5 0.821927 0.783526 0.747258 0.712986 0.680583 0.649931 0.620921 0.567427 0.519369 0.476113 0.401878 6 0.790315 0.746215 0.704961 0.666342 0.630170 0.596267 0.564474 0.506631 0.455587 0.410442 0.334898 7 0.759918 0.710681 0.665057 0.622750 0.583490 0.547034 0.513158 0.452349 0.399637 0.353830 0.279082 8 0.730690 0.676839 0.627412 0.582009 0.540269 0.501866 0.466502 0.403883 0.350559 0.305025 0.232568 9 0.702587 0.644609 0.591898 0.543934 0.500249 0.460428 0.424098 0.360610 0.307508 0.262953 0.193807 10 0.675564 0.613913 0.558395 0.508349 0.463193 0.422411 0.385543 0.321973 0.269744 0.226684 0.161506 11 0.649581 0.584679 0.526788 0.475093 0.428883 0.387533 0.350494 0.287476 0.236617 0.195417 0.134588 12 0.624597 0.556837 0.496969 0.444012 0.397114 0.355535 0.318631 0.256675 0.207559 0.168463 0.112157 13 0.600574 0.530321 0.468839 0.414964 0.367698 0.326179 0.289664 0.229174 0.182069 0.145227 0.093464 14 0.577475 0.505068 0.442301 0.387817 0.340461 0.299246 0.263331 0.204620 0.159710 0.125195 0.077887 15 0.555265 0.481017 0.417265 0.362446 0.315242 0.274538 0.239392 0.182696 0.140096 0.107927 0.064905 16 0.533908 0.458112 0.393646 0.338735 0.291890 0.251870 0.217629 0.163122 0.122892 0.093041 0.054088 17 0.513373 0.436297 0.371364 0.316574 0.270269 0.231073 0.197845 0.145644 0.107800 0.080207 0.045073 18 0.493628 0.415521 0.350344 0.295864 0.250249 0.211994 0.179859 0.130040 0.094561 0.069144 0.037561 19 0.474642 0.395734 0.330513 0.276508 0.231712 0.194490 0.163508 0.116107 0.082948 0.059607 0.031301 20 0.456387 0.376889 0.311805 0.258419 0.214548 0.178431 0.148644 0.103667 0.072762 0.051385 0.026084