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of PRODUS co with Project A P This project requires an initial investment of project requires an initial invest $165,000. The project will have a

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of PRODUS co with Project A P This project requires an initial investment of project requires an initial invest $165,000. The project will have a life of 8 years. Annual revenues associated with the project will be $130,000 and expenses pro) ill bed and expenses associated with the project will be $35,000. associa with the 0. Calculate the net present value and the present value index for each project using the present value tables provided below. Present Value of $1 (a single sum) at Compound Interest. Present Value of an Annuity of $1 at Compound Interest. Just looking to get pointed in the right direction Use a minus sign to indicate a negative NPV. with Project A. I have tried 5.7466 and 5.74664 If an amount is zero, enter "O". for 8% & 8yrs. I'm getting 545,930.8 and 545927. Neither are showing correct. I was Enter the present value index to 2 decimals. using 130000-35000=95000 x5.xxx Project A Total present value of net cash flow 545,930. Amount to be invested 165,000 Net present value 380,930. x Note: Present value index: Project A 3.31 Project B Based upon net present value, which project has the more favorable profit prospects? Project A Based upon the present value index, which project is ranked higher? Project A

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