Information for two alternative projects involving machinery investments follows. Project $1$ requires an initial investment of $$134,400.$ Project $2$ requires an initial investment of $$101,700.$ 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.$)$

Compute the net present value of each potential investment. Use $7$ years for Project $1$ and $5$ years for Project $2.($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 $1$

Annual Amounts

Sales of new product: $$109,800$

Expenses

Materials, labor, and overhead $($except depreciation$)$: $73,450$

Depreciation$$Machinery: $19,200$

Selling, general, and administrative expenses: $9,040$

Income: $$8,110$

Initial investment: $$134,400$

Project $2$

Annual Amounts

Sales of new product: $$86,600$

Expenses

Materials, labor, and overhead $($except depreciation$)$: $36,160$

Depreciation$$Machinery: $20,340$

Selling, general, and administrative expenses: $22,600$

Income: $$7,500$

Initial investment: $$101,700$

ROI: $10\%$