One company is about to have two investment projects. Both projects are concerned with the purchase of new plant. The following data are available for each project:

$\backslash$table$[[,$project $1,$project$2],[$cost $($immediate outlay$),340,220],[$expected annual operating profit $($loss$)$:$,,],[$year$1,51,20],[$year$2,30,-4],[$year$3,42,25],[\backslash$table$[[$estimated residual value of the plant after $3],[$years$]],40,10]]$

The business has an estimated cost of capital of $12$ per cent. It uses the straight$-$line method of depreciation for all non$-$current $($fixed$)$ assets when calculating operating profit. Neither project would increase the working capital of the business. The business has sufficient funds to meet all investment expenditure requirements.

Required: Calculate the net present value;