Net Present Value-Unequal Lives Project 1 requires an original investment of $46,400. The project will yield cash flows of $12,000 per year for seven years, Projec 2 has a calculated net present value of $10,300 over a five-year life. Project 1 could be sold at the end of five years for a price of $55,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. Present Value of $1 at Combound Interest Present Value of an Annuity of $1 at Compound Interest a. Determine the net present value of Project 1 over a five-year life with residual value, assuming a minimum rate of return of 20%. If required, round to the nearest dollar. b. Which project provides the greatest net present value? A project has estimated annual net cash flows of $5,000 for three years and is estimated to cost $35,000. Assume a minimum acceptable rate of return of 15%. Use the Present Value of an Annuity of $1 at Compound Interest table below. Present Value of an Annuity of $1 at Compound Interest Determine (1) the net present value of the project (if required, round to the nearest dollar) and ( 2 ) the present value index (rounded to two decimal places). If required, use the minus sign to indicate a negative net present value. (1) Net present value of the project (2) Present value index