me Left 2:14:53 W Spring/Summer 2020) (Remotely Proctored) Gurmet Katto Capital Budgeting 21 Maxima Construction is considering 2 long-term capital Investment projects. Each investment has a useful life of 3 years. Relevant data for each project follows: Capital Investment Annual Cash Flow Project A $ 25,000 $10,500 Project B $ 21,000 $ 9,500 Additional Information: . Depreciation is calculated by the straight-line method with no residual (salvage) value. The company's cost of capital rate is 8%. Refer to the excerpts of the Present Value Tables provided below. . All of your work must be clearly labelled and laid out so that the marker and grade it. Present Value (PV) of $1 2 Present Value $ 25,000 Project B 321,000 al Cash Flow $10,500 $9,500 Additional Information: Depreciation is calculated by the straight-line method with no residual (salvage) value. The company's cost of capital fte is 8%. . Refer to the excerpts of the Present Value Tables provided below. All of your work must be clearly labelled and laid out so that the marker can follow and grade it. 2% 2 1 8% 2 Present Value (PV) of $1 4% 6% 8% 10% 1 0.98039 0.96154 0.94340 0.92593 0.90909 0.96117 0.92456 0.89000 0.85734 0.82645 0.94232 0.88900 0.839621 0.79383 0.75131 0.92385 0.85480 0.79209 0.73503 0.68301 0.90573 0.82193 0.74726 0.68058 0.62092 0.88797 0.79031 0.70496 0.63017 0.56447 0.87056 0.75992 0.66506 0.58349 0.51316 0.85349 0.73069 0.62741 0.54027 0.46651 3 Present Value (PV) of an Annuity of $1 2% 4% 6% 0.98039 0.96154 0.94340 0.92593 1.94156 1.88609 1.83339 1.78326 2.88388 2.77509 2.67301 2.57710 3.80773 3.62990 3.46511 3.3121 4.71346 4.45182 4.21236 3.9927 5.60143 5.24214 4.91732 4.622 4 5 6 7 6.47199 6.00205 5.58238 5.20 7.32548 6.732746.20979 5.74 8 0.83676 0.70259 0.59190 0.50025 0.42410 9 8.16224 7.43533 6.80169 6.2- tely Proctored) The company's cost of capital rate is 8% Refer to the excerpts of the Present Value Tables provided below All of your work must be clearly labelled and laid out so that the marker can follow and grade it. x 1 2 3 1 2 5 3 Present Value (PV) of $1 2% 6% 8% 10% 0.98039 0.96154 0.94340 0.92593 0.90909 0.96117 0.92456 0.89000 0.85734 0.82645 0.94232 0.88900 0.83962 0.79383 0.75131 0.92385 0.85480 0.79209 0.73503 0.68301 0.905731 0.82193 0.74726 0.68058 0.62092 0.88797 0.79031 0.70496 0.63017 0.56447 0.87056 0.75992 0.66506 0.583491 0.51316 0.85349 0.73069 0.62741 0.540271 0.46651 0.83676 0.70259 0.59190 0.50025 0.42410 0.82035 0.67556 0.55839 0.46319 0.38554 4 6 7 5 Present Value May 1 2x 0.98039 0.96154 0.94340 0.92 0.900 1.94156 1.88609 1.83339 1.78326 1.73554 2.88388 2.77509 2.67301 2.57710 2865 3.80773 3.62990 3.46511 3.31213 3.16981 4.71346 4.45182 4.21236 3.99271 3.79079 5.60143 5.24214 4.91732 4.62288435526 6.47199 6.00205 5.58238 5.20637 486842 7.32548 6.73274 6.20979 5.74664 5.33493 8.16224 7.43533 6.80169 6.24689 5.75902 8.98259 8.11090 7.36009 6.71008 6.14457 6 8 7 9 8 10 9 10 Question 29 (10 points) 1. Compute the net present value for each project. (Round to nearest dollar) 2. Explain which project you would recommend and why. Hotely Proctored) Question 29 (10 points) 1. Compute the net present value for each project. (Round to nearest dollar 2. Explain which project you would recommend and why. P Format B Net Present Value (Project A): I - Net Present Value (Project B): Recommendation and why