Labeau Products, Ltd., of Perth, Australia, has $32,000 to invest. The company is trying to decide between two alternative uses for the funds as follows:

	Invest in Project X				Invest in Project Y
Investment required	$	32,000			$	32,000
Annual cash inflows	$	9,000
Single cash inflow at the end of 6 years					$	60,000
Life of the project		6	years			6	years

The companys discount rate is 16%.

Click here to view Exhibit 8B-1 and Exhibit 8B-2, to determine the appropriate discount factor(s) using tables.

Required:

a. Determine the net present values.