eBook Calculator Net Present Value-Unequal Lives Daisy's Creamery Inc. is considering one of two investment options. Option 1 is a $55,000 investment in new blending equipment that is expected to produce equal annual cash flows of $18,000 for each of seven years. Option 2 is a $62,000 investment in a new computer system that is expected to produce equal annual cash flows of $23,000 for each of five years. The residual value of the blending equipment at the end of the fifth year is estimated to be $12,000. The computer system has no expected residual value at the end of the fifth year. Present Value of $1 at Compound Interest Year 6% 1090 1290 1590 2000 0.943 0.9090.8930.8700.833 2 0.890 0.826 0.7970.756 0.694 3 0.840 0.751 0.712 0.658 0.579 40.792 0.683 0.6360.5720.482 0.747 0.6210.5670.4970.402 60.70S 0.564 0.5070.4320.335 70.665 0.513 0.4520.3760.279 0.627 0.4670.404 0.3270.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.3860.322 0.247 0.162 Present Value of an Annuity of $1 at Compound Interest 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 Year 6% 200 PM 4/20/2018 DOLL