Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $132,300. Project 2 requires an initial investment of $99,000. 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	Project 1	Project 2
Sales of new product	$ 107,100	$ 84,200
Expenses
Materials, labor, and overhead (except depreciation)	71,500	35,200
DepreciationMachinery	18,900	19,800
Selling, general, and administrative expenses	8,800	22,000
Income	$ 7,900	$ 7,200

Compute the net present value of each potential investment. Use 7 years for Project 1 and 5 years for Project 2. Assume cash flows occur evenly throughout each year. (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
Chart values are based on:
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Select Chart	Amount	x	PV Factor	=	Present Value
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Net present value
Project 2
Chart values are based on:
n =
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Select Chart	Amount	x	PV Factor	=	Present Value
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Net present value