Dwight Donovan, the president of Perez 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 $114,000 and for Project B are $32,000. The annual expected cash inflows are $35,964 for Project A and $10,536 for Project B. Both investments are expected to provide cash flow benefits for the next four years, Perez Enterprises' desired rate of return is 4 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 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.) Not Present Value Project A Project B Which project should be adopted? Required a a. Compute the net present value of each project. Which project should be adopted based on the net present value approa b. Compute the approximate Internal rate of return of each project. Which one should be adopted based on the internal rate approach? ces 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 retum approach? Internal Rate of Return Project A Project B Which project should be adopted? % % Required A TABLE 1 PRESENT VALUE OP51 9 15 5 6 75 84 10% 12 145 16 20 1 0.961535 0.952381 09:43396 0.934579 0.925926 0.917431 0909091 0.892557 0877193 0562009 2 09245560007029 0.899996 0.873439 0.357339 0.841650 0.826-146 07971940.769.165 0.713163 0.691 30.336996 0.163838 0.839619 0.816299 0.793632 0.772163 0.751315 0711750 0.674972 0.640650 0575701 4 0.551001 0.522702 0.792091 0.762595 0.735030 0.705425 0.633013 0.635515 0.592000 0.552291 0152253 5 0.821927 0733526 0.747253 0.712956 06005830.6.19931 0.620921 0567427 0519369 0.176113 0.101678 6 0.790315 0.746215 0.701961 0666342 0630170 0.596267 0.561474 0.506631 0.155557 0.410142 0334595 7 0.759913 0710651 0 665057 0.622750 0.593190 0.547034 0513155 0452349 0.399637 0353530 0279052 0.73069006768390.62741205620090510269 0 501566 0466.07 030355 0350559 0.305025 0.232565 9 0.702507 06.16090 5915950543934 0500249 0.460425 0424095 0.360610 0307503 0.262953 0193307 10 0.675561 0613913 0555395 0503349 0463193 0.422451 030553 0.321973 0269744 022766640161506 11 0.019531 0.354679 0526780 0.475093 0.4258330357533 0.350194 0.287476 0236617 0.195417 0.1345 12 0.624597 0556837 0.496969 01.41012 0397110.3555350 31563 0156675 0207559 0.163463 0:112157 13 0600574 0.530321 0.468839 0.411964 0.367693 0.326179 0.289064 0.229174 0.192060 0.1-452270093464 14 0.5774750505063 0442301 0.397817 0.340161 0.299246 0.263331 0 204620 0.159710 0125195 0.077507 15 0.555265 0.451017 0417265 0.362446 0:315242 0.274533 0.239392 0.182696 0.1.10096 0 107927 0 064905 16 0533900 0.453112 0393616 0130735 0.291590 0.251570 0.217629 0163122 0.122592 0.093011 00500 12 0513373 0.436297 0.371360 0316574 0.270269 0231073 0197545 0.1456.14 0.107300 0000207 0,045073 15 0493625 0.415521 0.350344 0.295564 050249 0.211094 0 1795 0.130010 0094561 0.00914 0037561 19 0.474642 0.395734 0.330513 0.276505 0.231712 0.19.1490 0.1635OS 0.116107 0.012915 0 059007 031301 20 0.156337 0.376300 0311505 0.253419 0 214515 0.178431 0.143644 0 103067 0.072762 0051.5 0026054 TABLE 2 PRESENT VALUE OF AN ANNUITY OF 51 1 2 3 4 5 6 7 9 10 11 12 13 14 15 10 17 18 0.961535 1 336095 2.775091 3.629595 4151822 5242137 6.002055 6.732745 7.435332 8.1 10596 3.760472 9.355074 9.955645 10 563123 TL 115397 11.652296 12.165669 12.659297 13.133939 13.590326 S 0952351 1559410 2.723245 3.545951 4329473 5.075692 5.736373 6.163213 7.107322 7.721735 8:306414 3.563252 9 393573 9.595611 10.379655 10.837770 11 274000 11.699587 12.063321 12.162210 6 0.943396 1.533393 2673012 3.465106 4212364 4917324 5.582351 6 209794 6 301692 7360057 7.536375 3:353514 3.552683 9.294984 9.712249 10.105595 10.477260 10.327603 1 155110 11.469921 79 0.934579 1.S0S0LS 2624310 3.357211 4.100197 4.766540 5359239 3.971299 6 515232 7.023582 7498674 7.9.42656 5357651 8.745465 9.10791 9416619 9.763223 10.059057 10:335595 10.59-4014 89 99 0.925926 0.917431 1.753265 1.759111 2.577097 2531295 3.312127 3.239720 3.992710 3.559651 4622550 155919 5 206370 5.032953 5.7466395534519 6 246SSS 5.995247 6710051 6.417655 7135964 6.SOS 191 7:536075 7.100725 7.903776 7.150904 31214237 7.756150 3.559.79 9060653 8:351369 8312555 9.121638 5.543631 9371537 5.735625 9.003599 S 905113 9.315147 9. 1355-16 109 120 149 169 20% 0909091 0.592557 0.577193 0 562069 0.533333 1.735537 1 690051 1.646661 1.605232 1527775 2.4568522401531 2.321632 2215590 2.106151 3169565 3.037349 2913712 2.7951SI 2.558735 3.790797 3.604776 3.133051 3.274204 2.990612 1355261 11140 3.558663 3.634736 3325510 4563419 4563757 4.258305 4633565 3.600592 5334926 1967640 4.635564 433591 3.307160 5 759024 5325250 49.46372 100054 4.030967 6.14567 5.650233 5 2161 16 4.333227 192472 62495061 5.937699 5.452733 5.025614 4327060 6 S13692 6.194374 5.660292 5.197107 4.439217 7 103356 6.423545 5.542362 5.342334 4532631 7.366657 6625165 6002073 5.467529 1.610567 7.606050 6.S1036 6.142168 5.575.456 4675473 7.523 709 6.97.3936 6 265060 5663497 1229501 S021553 7 119630 6.372559 3.715704 4.77103 5.201412 7.2.19670 6.467420 5.51754 4512195 5:36.1920 7365777 6 550369 3.377455 5100 3.513561 7.469144 6.633131 5.92541 4569560 19 20