Net Present Value-Unequal Lives Project 1 requires an original investment of $42,100. The project will yield cash flows of $8,000 per year for five years. Project 2 has a calculated net present value of $10,000 over a three-year life. Project 1 could be sold at the end of three years for a price of $38,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. Year 4 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0.194 0 .558 0.386 0.322 0.247 0.162 8 10 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 Check My Work 2 more Check My Work uses remaining. Previous eBook Show Me How Calculator 8 9 10 0.627 0.592 .558 0.467 0.424 0.386 0.404 0.361 0.322 0.327 0.284 0.247 0.233 0.194 0.162 0 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 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.352 2.991 4.917 4.355 4.111 3.784 3.326 5.582 4.868 4.564 4.160 3.605 5.335 6.210 9 6.802 107.360 5.759 6.145 4.968 4.487 3.837 5.328 4.772 4.031 5.6505.0194.192 a. Determine the net present value of Project 1 over a three-year life with residual value, assuming a minimum rate of return of 6%. If required, round to the nearest dollar. b. Which project provides the greatest net present value? Check My Work 2 more Check My Work uses remaining. Previous