Dwight Donovan, the president of Runde Enterprises, is considering two investment opportunities. Because of resources, ne will be able to invest in only one of them. Project As to purchase a machine that we be actory in the machine expected to have a useful life of five years and no salvage value Project supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project Are $100.000 and for Home are 541000 The annual expected cash inflows are $30137 for Project A and $12.522 for Project B. Both vents espected to provide cash flow benefits for the next five years. Rundle Enterprises desired rate of retur 4 percent of Stand PYAS (Use appropriate factors from the tables provided) Required Compute the net present value of each project with project should be adopted based on the net present approach b. Compute the approudmate 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 airat Compute the not present value of each project, which project should be adopted based on the present auch? Round your fatto decimal places) Net Presente Projed Projects Which project should be adopted? Required) Dwight Donovan, the president of Rundle 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 $106.000 and for Project B are $41000. The annual expected cash inflows are $30,137 for Project A and $12,522 for Project B. Both investments are expected to provide cash flow benefits for the next five years Rundle Enterprises desired rate of return is 4 percent. (PV of S1 and PVA S1 (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 approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach? Internal Rate of Return % % Project A Project B Which project should be adopted?
