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Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of S127,400 Project 2 requires an initial investment of $92.700.

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Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of S127,400 Project 2 requires an initial investment of $92.700. Assume the company requires a 10% rate of return on its investments. CV of S1 EV of $1. PVA O $1. and FVA $1 (Use appropriate factor(s) from the tables provided.) Annual Amounts Project 1 Project 2 Sales of new product 5 109,800 $.78.600 Expenses Materials, labor, and overhead (except depreciation) 66,950 32,960 Depreciation Machinery 18,540 Selling aral, and administrative expenses 20,600 Incone $ 7,410 $6,500 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 volues should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar) 18.200 Project 1 Chart values are based on: Select Chart Amount PV Factor Present Value $ Net present value HE Nort Project 1 Chart values are based on: n = i = Select Chart Amount PV Factor = Present Value S 0 Net present value Project 2 Chart values are based on: n = Select Chart Amount PV Factor Il Present Value $ 0 Net present value

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