Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $130,200. Project 2 requires an initial investment of $96,300. 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	$ 104,400	$ 81,800
Expenses
Materials, labor, and overhead (except depreciation)	69,550	34,240
DepreciationMachinery	18,600	19,260
Selling, general, and administrative expenses	8,560	21,400
Income	$ 7,690	$ 6,900

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 = $ 0 Net present value Project 2 Chart values are based on: n = i = Select Chart Amount PV Factor = Present Value = $ 0 Net present value