es Dwight Donovan, the president of Franklin 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 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 B are $49,000. The annual expected cash inflows are $50,399 for Project A and $21,818 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Franklin 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? Required A Required B Compute the approximate internal rate of return of each project. Which one should be ac return approach? Project A Project B Internal Rate of Return do do % % Which project should he adopted? < Required A .Required B > Dwight Donovan, the president of Franklin 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 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 B are $49,000. The annual expected cash inflows are $50,399 for Project A and $21,818 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Franklin 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? Beaulted A Required B > TABLE 1 PRESENT VALUE OF $1 4% 5% 0.96153S 0.952381 6% 0.943396 8% 10% 9% 7% 0.934579 0.925926 0.917431 0.909091 2 0.924556 0.907029 3 0.88$996 0.563838 4 0.854504 0.822702 5 6 0.582009 0.540269 9 10 0.702587 0.675564 0.613913 0.644609 0.591893 0.543934 0.500249 0.558395 0.508349 0.463193 14% 16% 12% 0.833333 0.892857 0.877193 0.862069 0.743163 0.694444 0.889996 0.873439 0.857339 0.841680 0.526446 0.797194 0.769468 0.772183 0.751315 0.711780 0.674972 0.640658 0.578704 0.839619 0.816298 0.793832 0.482253 0.792094 0.762895 0.735030 0.708425 0.683013 0.63551S 0.592030 0.552291 0.476113 0401878 0.649931 0.620921 0.567427 0.519369 0.321927 0.783526 0.747258 0.712986 0.630583 0.506631 0.455587 0.410442 0.334898 0.666342 0.630170 0.596267 0.564474 0.790315 0.746215 0.704961 0.353830 0.279082 0.547034 0.513158 0.452349 0.399637 7 0.75991$ 0.710651 0.665057 0.622750 0.583490 0.350559 0.305025 0.232568 0.466507 0.403883 $ 0.730690 0.676339 0.627412 0.193507 0.262953 0.360610 0.307508 0.424095 0.385543 0.321973 0.269744 0.226684 20% 0.501966 0.460425 0.4224111 0.161506 11 0.649581 0.584679 0.526788 12 13 0.428883 0.387533 0.350494 0.287476 0.236617 0.195417 0.475093 0.112157 0.315631 0.256675 0.207559 0.168463 0.397114 0.355535 0.496969 0.444012 0.624597 0.556837 0.326179 0.289664 0.229174 0.182069 0.145227 0.093464 0.414964 0.367698 0.600574 0.530321 0.465539 0.299246 0.263331 0.204620 0.159710 0.125195 0.077887 0.387817 0.340461 14 0.577475 0.505068 0.442301. 0.315242 0.274538 0.239392 0.182696 0.140096 0.107927 0.064905 15 0.555265 0.451017 0.417265 0.362446 16 0.533905 0.458112 0.393646 0.335735 0.291890 0.251870 0.217629 0.163122 0.122892 0.093041 0.134588 0.054085 17 18 19 20 0.456387 0.107500 0.050207 0.045073 0.270269 0.231073 0.197545 0.145644 0.513373 0.436297 0.371364 0.316574 0.069144 0.037561 0.211994 0.179359 0.130040 0.094561 0.295864 0.250249 0.415521 0.493625 0.350344 0.059607 0.031301 0.032948 0.163508 0.116107 0.194490 0.276503 0.231712 0.395734 0.330513 0.474642 0.026054 0.175431 0.145644 0.103667 0.072762 0.0513851 0.214545 0.258419 0.376559 0.311905 TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 4% 5% 1 0.961535 2 3 4 5 3.629895 3.545951 4.451822 4.329477 6% 0.952381 0.943396 1.859410 1.833393 1.356095 2.775091 2.723243 2.673012 3.465106 6 5.242137 5.075692 7 6.002055 $ 6.732745 7.435332 10 11 12 9.385074 13 14 10.563123 9.395641 15 11.115357 10.379655 16 11.652296 10.037770 17 12.165669 11.274066 15 12.659297 19 13.133939 20 13.590326 6.463213 6.209794 7.107822 6.501692 7.360087 7.721735 5.110696 5.760477 5.306414 7.886375 5.363252 8.383544 9.935645 9.393573 0.852683 9.294954 9.712249 10.105395 10.477260 11.609537 10 527603 12.005321 11.155116 12.462210 11.4699211 10.335595 9.603599 10.594014 9 $15147 8.905115 9.125546 9% 12% 75% 10% 14% 8% 0.909091 0.592857 0.877193 0.934579 0.925926 0.917431 1.646661 1.605232 1.735537 1.690051 1.783265 1.759111 1.005018 2.321632 2.245590 2.531295 2.486352 2.401831 2.624316 2.577097 3.387211 3.312127 3.239720 3.169565 3.037349 2.913712 2.798181 3.274294 2990612 4.100197 3.992710 3.559651 3.790787 3.604776 3.433081 4.212364 4.111407 3.885665 3.654736 3.325510 4.766540 4.622550 4.485919 4.355261 4.917324 4.865419 4.563757 4.288305 4.038565 3.604592 5.786373 5.582381 5.389289 5.206370 5.032953 3.537160 5.971299 5.746639 5.534519 5.334926 4.967640 4.638564 4.343591 4.946372 4.606544 4.030967 6515232 6.246888 5.995247 5.759024 5.328250 6.417655 6.144567 5.650223 7.023582 6.710001 5.216116 4.533227 4.192472 7.493674 5.937699 5.452733 5.025644 4327060 6.495061 7.138964 6.505191 6.513692 7.942636 7.536075 7.160725 6.194374 5.660292 5.197107 4439217 4.532661 8.357651 7.903776 7.456904 7.103356 6.423545 5.542362 5.342334 4.610567 5.745465 5.244237 7.786150 7.366687 6.625163 6002072 5.467529 6142160 5.575456 4.675473 7.606000 6.310564 9.107914 8.559479 5.060658 6.265060 5.665497 4.729561 9.446649 $551369 8312558 7.523709 6.973956 9.763223 9.121635 8.543631 5.021553 7.119630 6.372859 5.748704 4.774634 6.467420 5.517545 4512195 10.059057 9.371857 755625 5.201412 7/249670 5.877455 6.550369 4.543496 $364920 7.365777 5.928841 4569500 6.623131 $513564 7.469444 20% 16% 0.562069 0.833333 1.527775 2.106431 2.588735 Dwight Donovan, the president of Franklin 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 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 B are $49,000. The annual expected cash inflows are $50,399 for Project A and $21,818 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Franklin 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.) Project A Project B Which project should be adopted? Net Present Value Dwight Donovan, the president of Franklin 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 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 B are $49,000. The annual expected cash inflows are $50,399 for Project A and $21,818 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Franklin 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 approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach? Project A Project B Which project should be adopted? Internal Rate of Return % %