Krause Enterprises is looking to invest in Project A or Project B. The data surrounding each project is provided below. Krause's cost of capital is 10%.

Project A

This project requires an initial investment of $165,000. The project will have a life of 3 years. Annual revenues associated with the project will be $130,000andexpenses associated with the project will be $35,000.

Project B

This project requires an initial investment of $140,000. The project will have a life of 5 years. Annual revenues associated with the project will be $105,000andexpenses associated with the project will be $60,000.

Total present value of net cash flow for A and B?

Net present value for A and B?

Present value index:

Project A?

Project B?