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Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $137,900. Project 2 requires an initial investment of $106,200. 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 $ 114,300 $ 90,600
Expenses
Materials, labor, and overhead (except depreciation) 76,700 37,760
DepreciationMachinery 19,700 21,240
Selling, general, and administrative expenses 9,440 23,600
Income $ 8,460 $ 8,000

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.)

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