Exercise 11-14 (Algo) Net present value of an annuity LO P3 Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $131,600. Project 2 requires an initial investment of $98,100. Assume the company requires a 10% rate of return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project 1 $ 106,200 Project 2 $ 83,400 34,880 19,620 21,800 $ 7,100 70,850 18,800 8,720 $ 7,830 Compute the net present value of each potential investment. Use 7 years for Project 1 and 5 years for Project 2. (Negative net present values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar.) Present Value of Net Cash Flows = $ Present Value Project 1 Net Cash Flows x of Annuity at 10% = Years 1-7 Present value of cash inflows Net present value Present Value Project 2 Net Cash Flows x of Annuity at Present Value of Net Cash Flows 10% Years 1-5 $ Net present value 0