Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $137,200. Project 2 requires an initial investment of $105,300. 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	$ 113,400	$ 89,800
Expenses
Materials, labor, and overhead (except depreciation)	76,050	37,440
DepreciationMachinery	19,600	21,060
Selling, general, and administrative expenses	9,360	23,400
Income	$ 8,390	$ 7,900

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 = i = Select Chart Amount PV Factor = Present Value = Net present value Project 2 Chart values are based on: n = i = Select Chart Amount x PV Factor Present Value Net present value