Net Present Value --Unequal Lives Project 1 requires an original investment of $113,800. The project will yield cash flows of $23,000 per year for 8 years. Project 2 has a computed net present value of $21,700 over a six-year life. Project I could be sold at the end of six years for a price of $84,000, Use the Present Value of s1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. Present Value of $1 at Compound Interest 6% Year 10% 12% 15% 20% 0.833 1 0.909 0.893 0.870 0.943 0.890 2 0.826 0.694 0.797 0.712 0.756 0.658 3 0.840 0.792 4 0.751 0.683 0.621 0.636 0.572 5 0.567 6 0.564 0.507 0.747 0.705 0.665 0.627 0.592 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.497 0432 0.376 0.327 0.284 0.513 0.467 0.424 8 0.452 0.404 0.361 0.322 9 10 0.558 0.386 0.247 0.162 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 2 5.582 4.868 4.564 4.160 3.605 B 6.210 5.335 4.968 4.487 3,897 9 6.802 5.759 5.328 4.722 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine the net present value of Project 1 over a six-year life with residual value, assuming a minimum rate of return of 12%. It required, round to the nearest dollar b. Which project provides the greatest net present value