Exercise 26-14 (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 $137,900. Project 2 requires an initial investment of $106,200. Assume the company requires a 10% rate of return on its investments. (PV of $1. EV of $1, PVA of $1, and FVA of $1) Note: 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 $114,300 Project 2 $ 90,600 76,700 19,700 9,440 $8,460 37,760 21,240 23,600 $ 8,000 Compute the net present value of each potential investment. Use 7 years for Project 1 and 5 years for Project 2. Note: 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 10% Present Value of Net Cash Flows Years 1-7 Net present value Project 2 Net Cash Flows x Years 1-5 Net present value Present Value of Annuity at 10% Present Value of Net Cash Flows