Exercise 24-14 (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 $135,800. Project 2 requires an initial investment of $103,500. Assume the company requires a 10% rate of return on its investments. (PV of $1. FV of $1. PVA of $1, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Project 1 $ 111,600 Project 2 $88,200 Sales of new product Expenses Materials, labor, and overhead (except depreciation) 74,750 36,800 Depreciation Machinery 19,400 20,700 Selling, general, and administrative expenses 9,200 23,000 Income $ 8,250 $7,700 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.) Project 1 Net Cash Flows X Present Value of Annuity at 10% Present Value of Net Cash Flows Years 1-7 Not present value Present Value of Annuity at . Net Cash Flows X Present Value of Net Cash Flows Project 2 Depreciation Machinery 19,400 20,700 Selling, general, and administrative expenses 9,200 23,000 Income $ 8,250 $ 7,700 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 Project 1 Net Cash Flows x of Annuity at Present Value of Net Cash Flows 10% Years 1-7 Net present value Net Cash Flows X Present Value of Annuity at 10% Present Value of Net Cash Flows Years 1-5 Project 2 Not present value