Net Present Value-Unequal Lves Project 1 requires an original investment of $54,900. The peoject will yield cash fows of $10,000 per year for 9 years, Project 2 has a coenputed net present value of \$18,000 over a seven-vear life. Project 1 could be sold at the end of seven years for a price of $38,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annulty of $1 at Compound Interest tabies shoran below. Present Value of an Annuity of $1 at Compound Interest a. Determine the net present value of Project t over a seven-year ife with ceadual value aossuming a minmum rate of recurn of 6 .4. If requred, cound to the nearent doliatis b. Which project provides the greatest net present value? Fendew rchesw win a. Add the present value of the annuity cash flows at 6% for 7 years (Refer Exhibit 5 in the tent.) and the present value of the sale price at the end cf 7 years (Refer Eahibit 2 in the text.). Subtract the amount to be invented from the total present values of Project 1. b. Compare the net present values for both projects