For each site, compute the net present value. Use the present value of an annuity of $1 table above. Ignore the unequal lives of the projects. If required, round to the nearest dollar.

Wichita

Topeka

Present value of annual net cash flows

Amount to be invested

Net present value

2. For each site, compute the net present value, assuming that Wichita is adjusted to a four-year life for purposes of analysis. Use the present value of $1 table above. If required, round to the nearest dollar.

Wichita

Topeka

Present value of net cash flow total

Amount to be invested

Net present value

3. The net present value of the two sites over equal lives indicates that the a superior investment.

site has a higher net present value and would be