Dwight Donovan, the president of Munoz 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 $111,000 and for Project B are $32,000. The annual expected cash inflows are $34,262 for Project A and $10,983 for Project B. Both investments are expected to provide cash flow benefits for the next four years. Munoz Enterprises' desired rate of return is 6 percent. (PV of $1 and PVA of $1) (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? Project A Required A Required B > TABLE 1 PRESENT VALUE OF $1 n 1234567899 12% 14% 4% 5% 6% 7% 8% 9% 10% 16% 20% 0.961538 0.952381 0.943396 0.934579 0.925926 0.917431 0.917431 0.909091 0.892857 0.877193 0.862069 0.833333 2 0.924556 0.907029 0.889996 0.873439 0.857339 0.841680 0.826446 0.797194 0.769468 0.743163 0.694444 0.888996 0.863838 0.839619 0.816298 0.793832 0.772183 0.751315 0.711780 0.674972 0.640658 0.578704 0.854804 0.822702 0.792094 0.762895 0.735030 0.708425 0.683013 0.635518 0.592080 0.552291 0.482253 0.821927 0.783526 0.747258 0.712986 0.680583 0.649931 0.620921 0.567427 0.519369 0.476113 0.401878 0.790315 0.746215 0.704961 0.666342 0.630170 0.596267 0.564474 0.506631 0.455587 0.410442 0.334898 0.759918 0.710681 0.665057 0.622750 0.583490 0.547034 0.513158 0.452349 0.399637 0.353830 0.279082 0.730690 0.676839 0.627412 0.582009 0.540269 0.501866 0.466507 0.403883 0.350559 0.305025 0.232568 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 0.130040 0.094561 0.069144 0.037561 19 0.474642 0.395734 0.330513 0.276508 0.231712 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 0.178431 0.148644 0.148644 0.103667 0.072762 0.051385 0.026084 TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 n 1 4% 0.961538 5% 0.952381 6% 0.943396 7% 0.934579 8% 0.925926 0.917431 9% 10% 0.909091 2 1.886095 1.859410 1.833393 1.808018 1.783265 1.759111 1.735537 12% 14% 0.892857 0.877193 1.690051 1.646661 3 2.775091 2.723248 2.673012 2.624316 2.577097 2.531295 2.486852 2.401831 456789 3.629895 3.545951 3.465106 3.387211 3.312127 3.239720 3.169865 3.037349 4.451822 4.329477 4.212364 4.100197 3.992710 3.889651 3.790787 3.604776 5.242137 5.075692 4.917324 4.766540 4.622880 4.485919 4.355261 4.111407 2.321632 2.913712 3.433081 3.888668 16% 20% 0.862069 0.833333 1.605232 1.527778 2.245890 2.106481 2.798181 2.588735 3.274294 2.990612 3.684736 3.325510 6.002055 5.786373 5.582381 5.389289 5.206370 6.732745 6.463213 6.209794 9 7.435332 7.107822 6.801692 5.971299 6.515232 10 8.110896 7.721735 7.360087 7.023582 6.417658 6.144567 11 8.760477 8.306414 7.886875 7.498674 6.805191 6.495061 12 9.385074 8.863252 8.383844 7.942686 13 9.985648 14 10.563123 15 11.118387 16 11.652296 17 12.165669 18 12.659297 19 13.133939 20 13.590326 9.393573 8.852683 8.357651 5.032953 4.868419 4.563757 5.746639 5.534819 5.334926 4.967640 6.246888 5.995247 5.759024 5.328250 6.710081 7.138964 7.536078 7.903776 4.288305 5.650223 5.216116 4.038565 3.604592 4.638864 4.343591 3.837160 4.946372 4.606544 4.030967 4.833227 4.192472 5.937699 9.898641 9.294984 8.745468 8.244237 7.160725 6.813692 7.486904 7.103356 7.786150 7.366687 6.194374 6.423548 6.628168 5.452733 5.660292 5.842362 6.002072 5.028644 4.327060 5.197107 4.439217 5.342334 4.532681 10.379658 9.712249 9.107914 8.559479 8.060688 7.606080 6.810864 6.142168 5.467529 4.610567 5.575456 4.675473 10.837770 10.105895 9.446649 8.851369 11.274066 10.477260 9.763223 9.121638 11.689587 10.827603 10.059087 9.371887 8.312558 7.823709 8.543631 8.021553 8.755625 8.201412 6.973986 7.119630 12.085321 11.158116 10.335595 9.603599 8.905115 8.364920 12.462210 11.469921 10.594014 9.818147 9.128546 8.513564 6.265060 5.668497 4.729561 6.372859 5.748704 4.774634 7.249670 6.467420 5.817848 4.812195 7.365777 6.550369 5.877455 4.843496 7.469444 6.623131 5.928841 4.869580