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Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $136,500. Project 2 requires an initial investment of $104,400.
Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $136,500. Project 2 requires an initial investment of $104,400. 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) Note: Use appropriate factor(s) from the tables provided. 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
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