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Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $131,600 Project 2 requires an initial investment of $98100.

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Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $131,600 Project 2 requires an initial investment of $98100. Assume the company requires a 10% rate of return on its investments (PV of $1. FV of $1. PVA of $1, and EVA of $:0 (Use appropriate foctor(s) from the tables provided.) Annual Amounts Project 1 Project 2 Sales of new product $ 106,200 $ 83,400 Expenses Materials, labor, and overhead (except depreciation) 70,850 34,880 Depreciation Machinery 18,880 19,620 Selling, general, and administrative expenses 8,720 21,800 Income $7,830 $ 7.100 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: n Select Chart Amount x PV Factor Present Value Net present value Project 2 Chart values are based on: n Select Chart Amount PV Factor Present Value Net present value Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $131,600 Project 2 requires an initial investment of $98100. Assume the company requires a 10% rate of return on its investments (PV of $1. FV of $1. PVA of $1, and EVA of $:0 (Use appropriate foctor(s) from the tables provided.) Annual Amounts Project 1 Project 2 Sales of new product $ 106,200 $ 83,400 Expenses Materials, labor, and overhead (except depreciation) 70,850 34,880 Depreciation Machinery 18,880 19,620 Selling, general, and administrative expenses 8,720 21,800 Income $7,830 $ 7.100 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: n Select Chart Amount x PV Factor Present Value Net present value Project 2 Chart values are based on: n Select Chart Amount PV Factor Present Value Net present value

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