IX.Annual cash inflows from two competing investment opportunities are given below.

YEARINVESTMENTAINVESTMENTB

1$10,000 $ 20,000

215,00010,000

320,00035,000

445,00025,000

Total Cash Inflows$90,000$90,000

Each investment opportunity will require the same initial investment, $65,000.

The firms required rate of return on investments is 10%.

Required:(10 pts.)

(1)Compute the Net Present Value of each investment.

(2) Which investment should be made, and explain why.

[Indicate which Table you used and show all your work]