Krause Inc. is looking to invest in Project A or Project B. The data surrounding each project is provided below. Krause's cost of capital is 11%.

Project A

This project requires an initial investment of $167,500. The project will have a life of 6 years. Annual revenues associated with the project will be $130,000andexpenses associated with the project will be $35,000.

1. Total present value of net cash flow=
2. Amount to be invested=$167,500
3. Net present value=

Project B

This project requires an initial investment of $137,500. The project will have a life of 4 years. Annual revenues associated with the project will be $111,000andexpenses associated with the project will be $60,000.

1. Total present value of net cash flow=
2. Amount to be invested= $137,500
3. Net present value=