now.com/ilm/takeAssignment/takeAssignmentMain.do?invoker assignments&takeAssignmentSessionLocator-assignment Calculator Alternative Capital Investments The investment committee of Sentry Insurance Co, is evaluating two projects, office expansion and upgrade to computer servers. The projects havwe differe useful lives, but each requires an investment of $490,000. The estimated net cash lows from each project are as follows: Net Cash Flows Year Office Expansion $125,000 125,000 125,000 125,000 125,000 125,000 $165,000 165,000 165,000 165,000 The committee has selected a rate of 12% for useful ife is $0; but at the end of the fourth year, the office expansion's residual value would be $180,000 purposes of net present value analysis. It also estimates that the residual value at the end of each projet Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.9434 0.9091 0.8929 0.8696 0.8333 2 0.8900 0.8265 07972 0.7561 0.6944 3 0.8396 0.7513 0.7118 0.6575 0.5787 4 0.7921 0.6830 0.6355 05718 0.4823 5 0.7473 06209 5674 0.4972 0.4019