opportunities LO 16-2, 16-3 Dwight Donovan, the president of Walton Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of three years and no salvage value. Project B supports a training program that will improve the skills o employees operating the current equipment Initial cash expenditures for Project A are $120.000 and for Project Bare $32,000. The annual expected cash inflows are $50,823 for Project A and $14,248 for Project B. Both investments are expected to provide cash flow benefits for the next three years Walton Enterprises desired rate of return is 6 percent. (PValS1 and PVA OS1) (Use appropriate factor(s) from the tables provided) Required Compute the net present value of each project. Which project should be adopted based on the net present value approach? b. Compute the approximate internal rate of return of each project which one should be adopted based on the internal rate of return approach Complete this question by entering your answers in the tabs below. Recured Compute the net present value of each project. Which project should be adopted based on the net present value proach Round your answers to decimal places) (Pronaa PO Who should be doctor Net Present Value 5 15.85040 5 Project opportunities LO 16-2, 16-3 ation Dwight Donovan, the president of Walton Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of three years and no salvage Value, Project B supports a training program that will improve the skills of employees operating the current equipment Initial cash expenditures for Project A are $120.000 and for Project Bare $32,000. The annual expected cash inflows are $50.823 for Project A and $14.248 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Walton Enterprises desired rate of return is 6 percent exotS1 and PVA of $1 (Use appropriate factor(s) from the tables provided.) Required a. Compute the net present value of each project which project should be adopted based on the net present value approach? b. Compute the approximate Internal rate of return of each project . Which one should be adopted based on the internal rate of return approach? rences Complete this question by entering your answers in the tabs below Feed Required Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return reach PA whecho de todo
